KARACHI: The Pakistan Stocks Exchange maintained its record-breaking trend and hit new his ever high highest levels with good gains and high trading activities during the outgoing week finally closed on December 06, 2024, due to local interest investors along with institutional funds on account of expectation of a further rate cut after declining inflation line in the country.
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KSE’s benchmark KSE-100 index in one week increased by 7, 696.63 points or 7.6 percent and the index ended the week at a new record of its historically high level of 1,09,053.95 points.
There was also an increase in trading activities because the average ready counter trading volume was 1673.40 million a day this week as compared to the average of 978.80 million shares a day in the previous week similarly average daily traded value on the ready counter was the 5497.00 million during this week compared to previous week value of 3685.00 million.
BRIndex100 is higher by 814.62 points and ends at 11,715.87 points with an average daily turnover of 1,463.181 million shares this week.
BRIndex30 climbed by 2,827.69 points to 35,481.86 points every week with an average daily turnover of 969.637 million shares.
However, the foreign investors only stayed on the selling side of the local equity market and sold $ 14.175 million worth of stocks during this week. Total market capitalization has gone up by Rs 970 billion to Rs 13.855 trillion.
An analyst at AKD Securities claimed that the further bullish mode continued in the week, causing a wide increment in the KSE-100 index, which showed its highest greatest Weekly point change with 7697 points to tie its peak record of 109, 054 points, 7. 6 percent WoW. These are the highest weekly returns in 4.7-year.”
The bullish momentum was supported by inflation for the Nov’24 at 4.9 percent YoY, the lowest in 6.5 years, and a pointer to further rate reduction in the next MPC meet on December 16, 2024.
Most exceptional on the chart were the stocks in the commercial banks, the Fertilizer firms, and the Oil & Gas Exploration firms, which gained 1434 points, 1424 points, and 1148 respectively during the week. He also added that ADR based on gross advances had risen to 46.9 % by November 15, 2024, due to yoy growth at 21 %, and is expected to cross 50% before the year-end to avoid the ADR tax arrangement.
On a sector basis, vanaspati and allied products, transport, refinery, cables, electrical goods, and engineering were some of the high flyers, with increases of 23.7%, 19.3%, 18.5%, 15.6%, and 14.5%, respectively.
On a flow basis, it was individuals, insurance companies, and foreigners who net sold $26.6 million, $21, .0 million, and $14.2 million respectively. However, mutual funds and companies were the largest buyers of the selling and purchased $44.0 million and $10.7 million respectively.
Again, the extensive gains were recorded by CNERGY with 45.6% ‘followed’ by Airlink (42.5%), PABC (30.1%), NML (29.0%), and PAEL (28.9%). On the downside, EFUG dipped 8.8%, JVDC 8.1%, HBL 3.8 %, AKBL 0.5% and P.
An analyst at JS Global Capital stated that the bullish fundamentals continued to drive the KSE-100 index to close at all-time high levels of 109,054, WoW up by +7.6 percent.
The inflation report began with the new week having Nov-24 data pointing at 4.9% YoY, a CPI record that has not been seen for the past 6.5 years. This decline is largely a consideration of the base effect of high inflation that was experienced in the last year. While the MoM rate of headline inflation is up by 50bps, the investor’s yearly picture is downward. The average for the first five months of FY25 was 7.9 percent which was much lower than that of the first five months of FY24 with an average of 28.6 percent.
PBS also reported that the trade deficit on a YoY basis was down by 7.4 percent during the first five months of the current FY: $8.65 billion against $9.3 billion in the same period last FY.
Banking sector stocks rose further as banks remain steadfast in their pursuit to attain ADR goals, data revealing the Banking sector’s Gross ADR surged 47 percent to 17 months high.
FAQs
1. What does it mean when stocks hit their highest-ever levels?
When stocks or a stock market index, like the S&P 500 or Dow Jones Industrial Average, hit their highest-ever levels, it means they have reached a new record high in terms of their price or value. This often reflects positive sentiment about the economy, strong corporate earnings, or favorable market conditions.
2. Why do stock prices or indices reach all-time highs?
Stocks reached record levels due to factors such as:
Strong corporate earnings reports.
Optimistic economic data, such as low unemployment or high GDP growth.
Central bank policies like low interest rates or quantitative easing.
Investor confidence and increased demand for stocks.
3. Should you invest when stocks are at their highest levels?
Investing at all-time highs can be risky as prices might correct. However, it depends on:
Your investment goals and time horizon.
Market conditions and underlying fundamentals.
Many successful investors focus on long-term potential rather than trying to time the market.