October 4, 2024
Bulls Remain Dominant in Pakistan Stocks on Prevailing Positive Sentiments

Bulls Remain Dominant in Pakistan Stocks on Prevailing Positive Sentiments

Karachi, July 26, 2023 – The bullish trend continued to dominate the Pakistan stocks on Wednesday, as positive sentiments prevailed following the disbursement of an IMF loan.

The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 46,682 points, marking a gain of 265 points from the previous day’s closing of 46,417 points.

READ MORE: Pakistan Equities Maintain Upward Trajectory, Add 362 Points

Ali Najib, a senior equity analyst at Topline Securities, remarked that the bulls maintained their stronghold on the Pakistan equities, leading to a closing bell at 46,682 levels, with the KSE100 index recording a substantial gain of 265 points (up 0.57 percent) on this trading day. The ongoing Bull Run has witnessed an impressive surge of over 5,000 points ever since the IMF approved the US$3 billion deal. Considering today’s gains, the cumulative rise amounts to an impressive 5,230 points, reflecting a remarkable increase of 12.6 percent.

Throughout the trading hours, the KSE100 index remained firmly in the green zone as investors continued to show interest in accumulating banking sector stocks in anticipation of the upcoming Monetary Policy announcement scheduled for the coming Monday.

READ MORE: Pakistan Stocks Hit 15-Month High, Ending at 46,055 Points Amid Bull Run

In addition to the market’s bullish performance, another highlight of the day was the appreciation of the Pakistani Rupee. The local currency gained Rs1.48 (appreciating by 0.52 percent) against foreign currencies, following eight consecutive sessions of devaluation. Analysts attribute this positive development to two main factors: firstly, the roll-over of $1 billion in Chinese Safe Deposits, and secondly, the State Bank of Pakistan’s permission for exchange companies to export foreign currencies other than USD via cargo or security companies and subsequently repatriate equivalent USD within five days into their Pakistan bank accounts.

READ MORE: Pakistan Stock Market Outlook Remains Positive with Favorable Factors

Among the top-performing stocks, MEBL, MCB, HUBC, UBL, and PSO played a significant role in driving market gains, collectively contributing +113 points. Market volumes also saw a notable increase, with a total of 426 million shares traded (up 33 percent from the previous day) and a value of Rs.14 billion (up 36 percent from the previous day). K-Electric Limited (KEL) led the volume chart with a remarkable 58.8 million shares changing hands on this trading day.

READ MORE: Pakistan Stocks Soar 522 Points; Banking Sector Leads the Charge

Investors and market participants remain optimistic as the IMF loan disbursement continues to bolster confidence in the Pakistani economy. The positive trajectory of the stock market, coupled with the appreciation of the Pakistani Rupee, has set the stage for potentially favorable market conditions in the days to come. However, analysts caution that prudent decisions and careful monitoring of market developments will be essential to capitalize on the current bullish trend in Pakistan’s equities market.