Market Momentum: KSE-100 Index Climbs to Record Highs
A Week of Optimism
March 22, 2025 (MLN): This week witnessed a remarkable surge in the KSE-100 index, driven by IMF optimism, the government’s firm resolve to address circular debt, and anticipated inflation declines. Investors seized this opportune moment, propelling the index up by an impressive 2,906.01 points, marking a 2.52% increase to close at 118,442.17.
Historic Highs
Remarkably, the index touched an all-time high of 119,421.81, showcasing significant intraday swings within the week. The highs and lows fluctuated between 119,421.81 and 115,883.22, respectively, encapsulating the market’s vibrant nature.
Economic Indicators Strengthen Market
The market capitalization for KSE-100 was reported at Rs3.57 trillion, growing 1.65% from last week’s Rs3.51 trillion. In US dollar terms, we noted a market cap increase to \(12.74 billion from the prior \)12.53 billion. March also saw a narrowed current account deficit, dropping considerably to \(12 million from the previous \)399 million, a promising sign of economic health.
Key Sector Performances
Prominent sectors this week included Oil & Gas, Technology, and Power Generation. Together, they added substantial points, bolstering the index’s performance. However, the Fertilizer sector slightly detracted from this upward momentum.
Investor Activity
Amid these developments, foreign investors were net sellers disposing of $7.95 million in equities. Interestingly, local investors stepped in, illustrating confidence by purchasing equivalent volumes. Moreover, while banks were significant buyers, mutual funds made notable sales.
A Positive Outlook
The KSE-100 index’s fiscal year-to-date returns touched an inspiring 50.98%, and the calendar year-to-date returns stand at 2.87%. As the market gears up for the upcoming weeks, the sentiments remain optimistic with expectations fixed on continued growth and stability. According to Mettis Global, these figures reflect a balanced and buoyant market environment.
As we move forward, eyes will remain on Large Scale Manufacturing, Foreign Investment trends, and the exchange rate indices — vital elements shaping the economic landscape. Stay tuned to see if the momentum continues in the weeks ahead.
