KARACHI: After suffering losses overnight due to nervous selling by a section of investors fearing US policy shift after Don­ald Tru­mp’s win, the stock market resumed its record-setting spree on Thursday, propelling the KSE 100 index to an all-time high closing above 92,500.

The overnight downtrend on the local bourse was in sheer contrast to the global bull run as Wall Street, the US dollar, and Bitcoin hit record highs. However, oil and gold futures witnessed some pruning amid rising hopes of peace in the Middle East after the US elections.

The benchmark KSE-100 index posted a gain of 673.10 to 92,694.54 and a loss of 164.25 to 91,891.47 intraday. However, it clo­sed the session at the highest-ever level of 92,520.49 after gaining 499.05 points or 0.54pc day-on-day.

Ahsan Mehanti of Arif Habib Corporation said st­­o­cks turned bullish as inv­estors anticipated a rating upgrade after the finance minister’s assurance on ma­­­croeconomic stability and MSCI’s expected sta­n­dard index weight revised at 4.4pc from Nov 26 owing to outperformance and liquidity.

The MSCI, in its latest review, announced the addition of eight Pakistani companies to its Frontier Market Small Cap Index. However, it removed TRG Pakistan from its Frontier Markets Index.

He added that a bull run in global equities, falling lending rates, over $3bn remittances in October and surging exports contributed to robust performance at the PSX.

Topline Securities Ltd said the recent Ijara Sukuk auction held at the bourse where the cut-off yield on one year Sukuk fell to 10.99pc drove the bull run, signalling a potential yield decline across all tenors in the upcoming T-bills and PIBs auction.

Following the prime minister’s recent visit to Saudi Arabia, a delegation led by the power minister has been left for the kingdom, with anticipated ann­ouncements of new Saudi investments, including Reko Diq as a likely flagship project.

This development spar­ked investor interest in Oil and Gas Development Company Ltd and Pakistan Petroleum Ltd.

Engro Corporation, Da­­w­ood Hercules, OGDCL, Hub Power, and Engro Fe­­rtiliser collectively added 475 points to the index. In contrast, major laggards were Systems Ltd, Habib Bank Ltd, Meezan Bank Ltd, Kohat Cement, and Chetrat Cement, which subtracted 173 points.

The trading volume shrank 23.66p to 678.78m shares and its value also fell 18.52pc to Rs24.82 day-on-day.

Published in Dawn, November 8th, 2024