The Pakistan Stock Exchange (PSX) continued its historic ascent on Thursday, with the benchmark KSE-100 index climbing to a new peak and edging closer to the significant 172,000-point threshold. This sustained rally was fueled by a surge in investor optimism following encouraging economic indicators.
Drivers of the Bullish Momentum
The market's upward trajectory was primarily supported by two key factors. First, the release of better-than-expected current account data for the month of November significantly improved the investment climate. Second, a noticeable reduction in the yields of Pakistan Investment Bonds (PIBs) made equities more attractive, prompting strong buying interest, particularly from local funds.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, confirmed the sentiment, stating that the positive current account figure bolstered investor confidence and led to fresh positioning across major sectors. The trading session remained firm and broad-based throughout the day.
Index Performance and Key Movers
At the closing bell, the KSE-100 index had posted a substantial gain of 1,646.79 points, or 0.97%, settling at a record 171,960.65. During the session, the index even touched an intra-day high, rallying as much as 1,935 points.
The advance was led by heavyweight stocks. Engro Holdings, Fauji Fertiliser Company, and United Bank Limited (UBL) were the major contributors, collectively adding a significant 1,504 points to the index's gain. Lucky Cement and Bank AL Habib also provided strong support.
However, the rally faced some resistance from laggards. Pioneer Cement, DH Partners, and Maple Leaf Cement closed in the red, erasing a combined 176 points from the index's advance. Overall, market participation was robust, with total traded volumes reaching 950 million shares valued at Rs54.1 billion.
Corporate Developments and Broader Context
The day also saw significant corporate news. Maple Leaf Cement announced its intention to acquire an 11.72% stake in Pioneer Cement at Rs478.43 per share, a move that will give it controlling interest. In another development, TPL Corp approved a share purchase agreement with Jazz International Holding for its subsidiary TPLI.
On the international front, investor attention is turning to the Bank of Japan's meeting, where a potential interest rate hike is anticipated. This could impact global currency and equity markets. Domestically, the KSE-100 index is up 1.23% on a weekly basis, with the 170,000 level now acting as a firm support.
Ismail Iqbal Securities noted that the benchmark closed at a new all-time high, backed by improved liquidity and activity centered around acquisition-related moves. Notably, foreign investors were net sellers during the session, offloading shares worth Rs1.6 billion.
