December 02, 2024 (MLN): The Pakistan Stock Exchange (PSX) has seen a significant increase in its trading value over the past couple of weeks, with today's session recording the highest traded value in over 7.5 years.
This notable growth comes at a time when the benchmark index of the stock market crossed its 100,000 mark last week—well ahead of its December target—and continues to record consecutive record closes.
It is important to note that trading activity surged by Rs11.12 billion, or 30.9%, in a single day, reaching Rs47.09bn.
This marked the highest daily traded value since May 31, 2017, which was the MSCI reclassification day.
The local bourse continues to retain investors' interest driven by positive macroeconomic indicators, IMF’s supporting hand, and falling bond yields, all contributing to the market’s bullish momentum.
Interestingly, the sudden spark in traded value is attributed to the country's inflation slowing to its lowest annual rate since April 2018, or 78 months.
The deceleration in inflation numbers gave another push to Investor confidence as it raised chances of further policy rate cuts, which in turn will lead to falling bond yields and reduce the opportunity cost of investing in risk-on assets.
This resulted in buyers booking much wider trades, ultimately pushing the traded value of the market to high levels.
Accordingly, the traded volume of shares surged to 1.56tr, the highest number of shares ever traded in a day since December 18, 2023-nearly a year to be precise.
To note, the ALLSHR Index has gained 23,106 points or 55.12% during the calendar year, whereas it has increased 36,911 points or 131.3% so far this calendar year.
