The Pakistan Stock Exchange (PSX) continued its bullish run on Monday, with the benchmark KSE-100 index hitting an all-time high of 84,000 points. The index surged by 712.77 points, or 0.85%, to reach 84,244.72 points from the previous close of 83,531.95 by midday.
Market analysts attributed the impressive climb to falling yields in the fixed-income market, prompting investors to seek higher returns in equities. Yousuf M Farooq, Director of Research at Chase Securities, noted that declining yields had spurred increased interest in the stock market. “Lower fixed-income returns are driving investors toward equities,” Farooq said, highlighting a quarter-on-quarter decline in receivables for key players in the oil and gas sector, including Pakistan Petroleum Limited (PPL) and Pakistan State Oil (PSO).
Despite political instability in Islamabad and a security incident in Karachi, where a blast near Jinnah International Airport late Sunday night claimed three lives and injured 11 others, the market remained largely unshaken. Farooq emphasized that investors have focused on securing better returns, largely ignoring these events.
Awais Ashraf, Director of Research at AKD Securities, echoed similar sentiments. He pointed to a “substantial decline in fixed-income market yields and the positive impact of energy tariff rationalization on energy sector stocks” as key drivers of the rally. Ashraf noted that energy companies such as Oil and Gas Development Company (OGDC), PPL, PSO, and Sui Northern Gas Pipelines Limited (SNGPL) had experienced gains due to improved cash flows following tariff adjustments.
The stock market’s record-breaking performance comes amidst an increasingly favorable economic environment for equities, with sectors offering high dividend yields and benefitting from structural reforms leading the charge.
