The Pakistan Stock Exchange (PSX) made history on Thursday as the benchmark KSE-100 Index surged by 2,849 points to close at 168,490, crossing the 168,000 mark for the first time ever.
The record-breaking rally came amid aggressive buying in key sectors, reflecting investor confidence in equities over other asset classes.
The KSE-100 Index touched new heights during intraday trading, gaining close to 3,000 points in a single session. Heavy buying was recorded in commercial banks, automobile assemblers, oil and gas exploration companies, and oil marketing firms.
Index-heavy stocks such as MARI, POL, SNGPL, SSGC, HBL, and UBL all traded in the green, further boosting momentum.
Analysts point to investor shift
Market experts highlighted that investors are increasingly favoring equities due to limited returns from alternative assets and supportive tax incentives.
“Investors are preferring equities as an asset class due to lack of returns from other asset classes and taxation incentives,” said an anaylst.
Corporate and economic developments
In a major corporate update, Gillette Pakistan Limited announced that its parent company, Procter & Gamble (P&G), will exit Pakistan as part of a global restructuring plan.
Meanwhile, Finance Minister Muhammad Aurangzeb assured that Pakistan is “well-positioned” to repay its $1.3 billion Eurobond maturing in April 2025, a statement that further strengthened market sentiment.
The local rally also followed a global uptrend in stock markets. Tech-driven rallies in the U.S. and Asia boosted investor optimism, with Japan’s Nikkei, South Korea’s KOSPI, and Taiwan’s tech-heavy exchange all posting strong gains.
Weak U.S. labor market data increased expectations of Federal Reserve rate cuts, further supporting global equities.
Just a day earlier, on Wednesday, the PSX had closed on a mixed note at 165,640 points after volatile intraday movements. The sudden surge on Thursday marked a clear shift in sentiment, with fresh buying overpowering caution.
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