Pakistan's KSE-100 Hits Record Highs on US Ties, Investor Preference
Pakistan's stock market today witnessed a significant surge, with the KSE-100 Index reaching fresh record highs. This shift was driven by a combination of factors, including improved US ties, positive economic sentiment, and growing investor preference for equities. The rally was primarily fueled by mutual fund liquidity, with investors exhibiting FOMO (fear of missing out). This trend was evident in the past month, as mid caps with growth triggers began to rerate, indicating a change in investor preference. The State Bank of Pakistan played a pivotal role in this liquidity boost. The KSE-100 Index recorded an intraday high of 168,619.32, up 2,978.99 points, or 1.8%, before closing at 168,489.62 points, up 2,849.29 points, or 1.72%. Despite a brief session low of 165,567.22, down 73.11 points, or -0.04%, the overall trend was bullish. While the government fell short of its Rs750 billion target in the latest T-bill auction, raising Rs696 billion, the market's performance was largely unaffected. Meanwhile, inflation accelerated to 5.6% in September, surpassing the government's 4.5% forecast. Despite this, the equity market continues to appeal to investors, with limited alternatives driving its growth.
