The Pakistan Stock Exchange (PSX) achieved a historic milestone on October 4, 2024, with the benchmark KSE-100 index surpassing the 83,000-point mark for the first time, closing at a record high of 83,531.96. This significant increase of 810.19 points, or 0.98%, was largely driven by strong buying interest in the banking and oil & gas sectors, alongside improving macroeconomic indicators.
The surge in the KSE-100 was attributed to a decline in yields on government bills and heightened investor interest in the exploration and production sector, particularly following favorable financial reports from Pakistan Petroleum Limited (PPL). Notably, brokerage firm Topline Securities reported that PPL, along with other key players in the market, contributed significantly to the index's rise.
Additionally, the State Bank of Pakistan announced that foreign exchange reserves exceeded $10 billion, a two-and-a-half-year high, following the disbursement of a loan tranche from the International Monetary Fund (IMF). This positive sentiment was juxtaposed against a backdrop of global economic tensions, as Asian stocks dipped slightly and oil prices surged due to escalating tensions in the Middle East, particularly following U.S. President Joe Biden's comments regarding potential strikes on Iran's oil facilities.
In the currency market, the Pakistani rupee appreciated by 0.08% against the U.S. dollar, closing at 277.52 in the inter-bank market. Trading volume on the all-share index rose significantly, reflecting increased investor activity and confidence in the market.
The implications of this market performance extend beyond Pakistan, highlighting a complex interplay of local economic recovery and global geopolitical dynamics that could influence investor behavior and economic policies worldwide.