KSE-100 index crossed 60,000 points, market surged 50% in just 5 months

The 100-index of Pakistan Stock Exchange (PSX)  soared past the 60,000-point level for the first time ever. The index gained 919.53 points or 1.54% to close at 60,730.87, setting a new record high.

The PSX has uplifted it from 40,000 points in last week of June FY 2023 to crossing 60,000 points in the end of November. It has risen by 50% in just five months, making it one of the best performing markets in the world.

Across-the-board buying was witnessed in index-heavy sectors including automobile assemblers, cement, chemical, commercial banks, oil and gas exploration companies as well as OMCs.

Topline Securities CEO Muhammad Sohail said in a comment on X (formerly Twitter) that the PSX is breaking records and the development is “still not surprising.”

The market has gained 50% in only five months to over 60,000 points from 40,000 points. “This is the fastest 50% rise in a few months after 2004,” he wrote.

The market optimism was the expectation that the State Bank of Pakistan (SBP) would slash its key policy rate by 7% to 15% by December 2024, from the current record high of 22%.

The buying spree also inspired by the prospects of receiving funds from the International Monetary Fund (IMF) and other lenders, following a staff-level agreement on the first review of the $3 billion Stand-By Arrangement (SBA).