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

Stocks extended their impressive rally on Wednesday, with the Pakistan Stock Exchange's (PSX) benchmark KSE-100 Index hitting a new all-time high of 96,711.33 points during intraday trading. This marked a gain of 854.67 points, or 0.89%, from the previous close of 95,856.66, as robust macroeconomic indicators and an improved fiscal outlook continued to drive market momentum despite fresh political uncertainty following an opposition protest call for November 24.  

The rally was supported by strong performances in key sectors, including technology, banking, energy, cement, fertilizers, oil and gas exploration, oil marketing, and power generation. Notable contributors to the gains included heavyweights like K-Electric, Pakistan State Oil, Shell, Oil and Gas Development Company, Pakistan Petroleum, Mari Petroleum, Meezan Bank, National Bank of Pakistan, and Habib Bank.  

### Key Drivers of the Rally:  
- **Macroeconomic Strength**: Falling inflation, a surge in foreign direct investment (FDI), and a current account surplus were central to the market's optimism.  
- **FDI Growth**: FDI rose 32% year-on-year to $904 million during July-October.  
- **Current Account Surplus**: October 2024 marked the third consecutive monthly surplus, with $349 million reported, fueled by a 7% month-on-month and 24% year-on-year rise in remittances.  
- **Foreign Reserves**: Reserves reached a two-year high, with projections exceeding $11 billion in the weeks ahead.  
- **Declining Inflation**: November's Consumer Price Index (CPI) is expected to drop to 4.5%-5%, the lowest in 78 months, with FY25 inflation projected to average 7.5%.  

### Sector Highlights:  
- **Technology**: Led the rally with a 34.9% year-on-year surge in export remittances from the Information and Communication Technology (ICT) sector, totaling $1.206 billion during July-October. October alone saw a 38.6% rise, reaching $330 million.  
- **Banking and Energy**: Continued strong performances contributed to sustained investor confidence.  

This rally followed Tuesday’s record-breaking session when the KSE-100 Index reached an intraday high of 96,036 points before closing at 95,857 with an 860.99-point gain (0.91%).  

The strong market performance underscores growing investor confidence in Pakistan’s economic recovery, despite the reemergence of political challenges.