Stock market climbs to highest in a year, hits 42,098.49 points
KARACHI: The investors at the Pakistan Stock Exchange (PSX) firmly welcomed the New Year 2020 as the benchmark KSE-100 share index rose to 42,098.49 points in an intraday peak with a dramatic gain of over 650 points on Thursday morning.
At 11.29am, the KSE-100 Index was 42,074.99 with an increase of 674.99 or 1.63 percent.
The KSE-100 Index accumulated massive gains of 664.92 points (1.63 percent) yesterday, the first day of 2020, and closed at 41,400 above the 41,000-level.
The index opened at 40,735.08 and did not look back, climbing by 809 points to intraday high. It had maintained the rising momentum that began last year in August and provided a 10pc return after wiping out all the red.
The optimism of investors persisted after two previous miserable years of negative returns as they saw the market back in the green. On the last working day of 2019, the stocks had fallen down.
The stock market witnessed major fluctuations in the previous week as it began on a negative note on Monday when the KSE-100 share index plummeted by 824.70 points for profit-taking sessions before Christmas holiday in the absence of positive triggers but later on Thursday gained 799.47 points in the midst of positive feelings among traders.
The index was last seen in February 2019 trading above 41,000 marks. So far, after hitting a five-year low at 28,671 points in August 2019, the market has recovered over 11,000 points.
Major developments earlier were, firstly, $1.3 billion in budget funding from the Asian Development Bank (ADB) to tackle reforms in the power sector, and secondly, $1.8 billion in worker remittances in November (9.4% higher than last month), thirdly, forex reserves amounting to $16 billion, up 0.4 percent on a weekly basis, excluding the tranche received from ADB, and fourthly, the latest 10-year PIB auction cut below 11 percent last seen in October 18.
External front change along with the Pakistani Rupee’s stability was required to convince foreign investors.
Meanwhile, inflationary readings are set to peak in January 2020 (this month) with an imminent reduction in interest rates to follow, he said domestic investors are also rejoicing.
Previously, Finance Advisor to the Prime Minister Dr Abdul Hafeez Shaikh had reported that Pakistan’s recent good stock market success was proof of “the investor confidence in stabilization initiatives” employed by the government-led Pakistan Tehreek-e-Insaf (PTI).
In a tweet, the Premier’s aide reported that the KSE-100 Index’s 14.9 percent increase in November was the highest one-month return in the past six years.
“The KSE-100 index is up by 14.9% in November 2019, highest one month return after May 2013. Since 16 August 2019, the index increased by 36.6% (10,500 points),” Mr Shaikh had said.