Karachi, July 29, 2024 – Bulls dominated the Pakistan stock market on Monday, with the benchmark KSE-100 index recording a significant gain of 798 points. The KSE-100 index closed at 78,828 points, up from last Friday’s closing of 78,029 points.
Analysts at Topline Securities Limited noted that, contrary to last week’s trend, Pakistan stocks began the week on a bullish note ahead of the key Monetary Policy Meeting scheduled for announcement this evening. The KSE-100 index exhibited positive momentum throughout the day, culminating in a 1.02% increase.
The day saw across-the-board buying in blue-chip stocks of KSE-100 index as the market anticipated a 100-150 basis points reduction in interest rates, spurred by a declining inflation trend and improved macroeconomic indicators.
Adding to the positive sentiment was the recent upgrade by Fitch Ratings, which elevated Pakistan’s Long-Term Foreign Currency Issuer Default Rating (IDR) to ‘CCC+’ from ‘CCC’. This upgrade was a significant factor in today’s bullish trend, reinforcing investor confidence.
Sector-wise, major contributions to the day’s gains came from the banking and energy sectors. Key performers included United Bank Limited (UBL), Fauji Fertilizer Company (FFC), Pakistan Oilfields Limited (POL), Oil and Gas Development Company (OGDC), and MCB Bank, which collectively added 452 points to the KSE-100 index. On the other hand, some profit-taking was observed in Hub Power Company (HUBC), Engro Corporation (ENGRO), and Habib Bank Limited (HBL), resulting in a combined loss of 84 points.
Trading volumes were robust, with over 370 million shares exchanged during the session, and the total trading value reaching Rs 19 billion. WAVESAPP led the volumes chart, trading over 27.9 million shares.
The positive trend in the stock market reflects the broader economic optimism and investor confidence ahead of the monetary policy announcement. The anticipated rate cut is expected to further stimulate economic activity, reducing borrowing costs for businesses and individuals alike.
In summary, the KSE-100 index’s impressive performance today highlights the market’s resilience and positive outlook amid favorable economic indicators and policy expectations. As investors await the outcome of the Monetary Policy Meeting, the market sentiment remains buoyant, with a continued focus on key economic developments and corporate earnings results.