PSX surges past 96,700 to hit new intraday high, led by outlook strength

• Rally driven by robust macroeconomic indicators.
• Tech, banking, energy sectors lead momentum.
• Rally persists despite opposition protest calls.

Stocks on Wednesday advanced, extending a massive ongoing rally powered by robust macroeconomic indicators and an improved fiscal outlook, despite the reemergence of political noise following an opposition party's protest call for November 24.

The Pakistan Stock Exchange's (PSX) benchmark KSE-100 Index touched a new all-time high of 96,711.33 points during intraday trading, reflecting a gain of 854.67 points or 0.89% from the previous close of 95,856.66.

The market’s momentum is being sustained by strong performances in key sectors such as technology, banking, and energy, alongside policy clarity and optimism regarding economic recovery.

Sectors, including cement, banking, fertiliser, oil and gas exploration, oil marketing, and power generation remained in the limelight.

Notable gains were posted by index-heavy names such as K-Electric, Pakistan State Oil, Shell, Oil and Gas Development Company, Pakistan Petroleum, Mari Petroleum, Meezan Bank, National Bank of Pakistan, and Habib Bank.

Factors supporting the rally are falling inflation, a 32% year-on-year surge in Foreign Direct Investment (FDI) to $904 million during July-October, and a current account surplus of $349 million for October 2024.

The State Bank of Pakistan (SBP) reported that October marked the third consecutive monthly current account surplus, driven by a 7% month-on-month and 24% year-on-year rise in remittances. 

Foreign exchange reserves have also reached a two-year high, with projections exceeding $11 billion in the coming weeks.

Inflation trends further bolstered investor sentiment. November’s Consumer Price Index (CPI) is projected to fall between 4.5% and 5%, marking a historic decline—the first time in 78 months inflation is anticipated to drop below 5%. For FY25, inflation is expected to average around 7.5%.

The technology sector led the rally, supported by a significant rise in export remittances from the Information and Communication Technology (ICT) sector. Remittances surged 34.9% year-on-year to $1.206 billion during July-October 2024, with October alone witnessing a 38.6% increase to $330 million.

On Tuesday, the KSE-100 Index reached an unprecedented level of 96,036 points during intraday trade, before closing at 95,857 with a record-breaking gain of 860.99 points (0.91%).

This is a developing story and is being updated with more details.