KSE-100 nears 100,000 on improving economic indicators

November 21, 2024 (MLN): Pakistan's benchmark stock index closed in on the historic 100,000 mark as investors continued to pile into stocks amid positive macroeconomic indicators and falling bond yields.

The KSE-100 Index jumped over 1,089 points or 1.1% to a record 96,635 as of 01:00pm. It is up more than 34,184 points or 54.7% so far this year.

According to analysts, stocks are expected to rally further by over 20% by the end of next year on the back of improving macro indicators and falling bond yields which is flushing more liquidity in equities.

Mutual funds have piled over $129 million into Pakistani stocks since January as bond yields fall. The State Bank of Pakistan has cut interest rates by a cumulative 700bps to 15% from 22% in May 2024 and may cut another 150bps in next month's review.

Pakistan's inflation has eased significantly from a record 38% in May 2023 to 7.2% in October. Consumer price gains are expected to ease further to below 5% in November, according to MG Research calculations

Such a reading would mark the smallest annual gain in prices since April 2018.

Gains in today's session were led largely by the Fertilizer sector, adding over 948pts to the index.

Top gainers during the day were FFBL (+9.39%), FATIMA (+9.30%), FFC (+8.79%), PKGP (+6.44%), and PSEL (+5.40%).

In the broader market, the All-Share Index was at 61,679.60 with a net gain of 497.43 points or 0.81%.

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