Banking sector leads the way as KSE-100 gains nearly 2,100 points to settle at record high

Banking sector witnessed heavy buying interest as the benchmark KSE-100 Index gained nearly 2,100 points to settle at a new record high of 78,802 during the first trading session post-Eid holidays on Thursday.

At close, the benchmark index settled at 78,801.53, an increase of 2,094.76 points or 2.73%. This is the fourth-largest single-day increase in KSE-100 history, said brokerage house Topline Securities.

It is pertinent to mention that the stock market was closed from June 17-19, 2024, on account of Eid-ul-Adha holidays.

On Thursday, buying was witnessed in key sectors including automobile assemblers, commercial banks, fertiliser, oil and gas exploration companies, OMCs, and refinery.

Index-heavy stocks including OGDC, POL, SHEL, SNGPL, MEBL, HBL traded in the green. However, it was the banking sector that contributed most to the benchmark’s gain.

During the previous week, the PSX also witnessed a bullish trend and hit record highs after the government did not change the tax regime for the capital markets.

The benchmark KSE-100 index surged by 2,952.75 points on a week-on-week basis and closed at its then-highest level of 76,706.77.

“Positive sentiments continue amid hope that new budget will help in securing long-term International Monetary Fund (IMF) deal,” said Mohammed Sohail, CEO Topline Securities, in a note.

The market expert informed in the last one year, the stock market had gained over 95% in PKR terms, and 100% in USD terms.

The market has also been bullish as Pakistan is hopeful of finalising a deal with the International Monetary Fund (IMF) on a longer, larger bailout.

In a key development, Fitch Ratings on Tuesday called Pakistan’s budget for fiscal year 2024-25 “ambitious”, but also stressed that it strengthens prospects for a deal with the IMF.

“It is uncertain whether fiscal targets will be hit, but even assuming only partial implementation of the budget, we forecast the fiscal deficit will narrow. This should reduce external pressures, albeit at a cost to growth,” it said in the commentary.