Karachi, July 12, 2023 – In a display of strong market performance, bulls continued to dominate the Pakistan stocks on Wednesday, driven by investor optimism surrounding the improvement of the country’s external position.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) gained 359 points, closing at 45,515 points, a significant increase from the previous day’s closing of 45,156 points.
READ MORE: KSE-100 Index Surpasses 45,000 Points, Reaches 14-Month High
Analysts at Topline Securities expressed their belief that Pakistan equities are currently experiencing a phenomenon of unwavering confidence, stating, “Believe in yourself and keep going.” This quote aptly captures the prevailing sentiment as the KSE100 index marched northward with an uninterrupted winning streak, surpassing the 45,515 level (+359 points, up 0.80 percent) by the end of the trading day.
The International Monetary Fund (IMF), as the global lender of last resort, is scheduled to hold a key and highly anticipated board vote on Pakistan’s $3 billion bailout later today. In anticipation of this crucial announcement, investors chose to further strengthen their equity positions by injecting additional funds into the market.
READ MORE: Pakistan Stocks Surge by 378 Points as Trading Improves
On the currency front, the Pakistani Rupee showed resilience, gaining further ground against the US Dollar. In interbank trading, the local currency appreciated by Rs. 1.09, or 0.39 percent, closing the trading session at Rs. 277.48.
The banking, power, chemical, and cement sectors played a significant role in driving the positive momentum, with stocks such as MEBL, HUBC, COLG, LUCK, and MCB collectively contributing 270 points. However, profit-taking activities led to a decline of 37 points in stocks of TRG, DAWH, and CHCC.
READ MORE: Promising Outlook: Pakistan Stock Market Soars on IMF Agreement
Market volumes for the day amounted to 450 million shares, representing an 18 percent decrease compared to the previous day. However, the total value of shares traded reached Rs. 13 billion, indicating an 8 percent increase. WTL remained the volume leader, with 50 million shares changing hands.
The prevailing bullish trend in Pakistan’s stock market suggests that investors continue to have confidence in the country’s economic prospects. As the IMF’s board vote approaches, market participants eagerly await the outcome, which could have a significant impact on the trajectory of Pakistan’s financial landscape.
