PSX starts FY 2024-25 strong with index surge

The Pakistan Stock Exchange (PSX) kicked off the fiscal year 2024-25 with a strong performance as the KSE-100 Index surged by nearly 400 points in the initial trading session on Monday. The benchmark index hit an intra-day high of 79,536.23, showcasing a remarkable increase of 1,091.26 points before a slight pullback due to profit-taking activities. By the end of the trading day, the KSE-100 index settled at 78,824.33, reflecting a gain of 379.37 points or 0.48%. Noteworthy buying activities were observed in sectors like cement, commercial banks, fertilizer, oil and gas exploration companies, and OMCs. Key stocks such as SNGPL, SSGC, PPL, OGDC, HBL, MCB, and NBP witnessed positive movements.

The market sentiment was largely influenced by the expectation of a staff-level agreement (SLA) between Islamabad and the International Monetary Fund (IMF) in the near future. Investors showed optimism regarding the approval of the new budget, which would pave the way for the disbursement of an IMF loan. Federal Minister for Finance and Revenue, Muhammad Aurangzeb, expressed confidence in securing a substantial bailout agreement with the IMF post the approval of the federal budget amounting to $67.76 billion.

Looking back at the previous fiscal year 2023-24, the PSX stood out as the top-performing equity market globally. The benchmark KSE-100 Index closed the year at 78,444.96, marking a significant increase from the preceding fiscal year. In contrast, Asian markets displayed mixed sentiments on Monday, with the euro strengthening after the first-round voting in France's snap election. The MSCI's Asia-Pacific shares index saw a slight rise, while Japan's Nikkei also showed a positive trend.

Despite a slight decrease in trading volume, the value of shares traded witnessed an uptick. Stocks like PTCL, WorldCall Telecom, and Faysal Bank were among the most actively traded. Out of the 425 companies traded, 183 saw an increase, 186 recorded a decline, and 56 remained unchanged.

The positive start of the fiscal year 2024-25 for the Pakistan Stock Exchange reflects investor confidence and market resilience. With key sectors showing promising movements and anticipation surrounding crucial agreements, the PSX is poised for further growth and stability in the coming days.