The Pakistan Stock Exchange (PSX) benchmark KSE-100 index extended its advances on Friday, crossing the 55,000 mark after a 1,000-point leap, achieving an all-time high.
PSX Crossed 55,000 Benchmark
According to the PSX website, the KSE-100 index rose 800 points, or 1.51%, from its previous finish of 54,261.42 at 10 a.m.
Moreover, Two hours later (at 12pm), the index had risen another 300 points, for a total increase of 1,102.69. At the time, the transaction volume was 55,364.11.
Arif Habib Limited stated on X (previously Twitter) that the index was at a “all-time high” in a post.
KSE100 crossed 55k level trading at all time high
— Arif Habib Limited (@ArifHabibLtd) November 10, 2023
Reason Behind Surge in PSX
Furthermore, FRIM Ventures Chief Investment Officer Shahbaz Ashraf told a local news source that the key cause for the surge was a drop in Pakistan Investment Bonds (PIBs) yields, which stimulated domestic buying.
“Besides this, the technical reason is that State Life is the main market buyer. I think majorly, the market is trading at very attractive valuations,” he added.
Falling yields are an important indicator of whether interest rates are set to fall.
Meanwhile, high yields are sometimes interpreted as an indication of tighter key policy rates, which might result in sluggish economic development and, as a result, lower market returns.
Domestic Shares Purchasing
Raza Jafri, head of equity at Intermarket Securities, credited today’s rally to lower PIB yields and robust domestic institutional purchasing.
However, expectations of a larger weight for Pakistan in the next review of global index provider MSCI were combining to push up the benchmark index, particularly in high dividend yielding stocks, he said.
MSCI indices assist passive investors in allocating assets in a range of equity markets throughout the world.
Furthermore, Topline Securities chief executive Mohammad Sohail, on the other hand, stated that while the KSE-100 index was at an all-time high, the KSE-30 index — which monitors the share prices of the top 30 businesses excluding dividends — was still 35 percent behind its 2017 record.
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