Karachi, February 23, 2024 – The bulls continued to dominate the Pakistan Stocks on Friday, driving the benchmark KSE-100 index to a remarkable gain of 901 points.
The index of Pakistan Stock Exchange (PSX) closed at 62,815 points, marking a substantial increase from the previous day’s closing at 61,914 points.
Nabeel Haroon, Senior Analyst at Topline Securities Limited, noted that the KSE-100 Index maintained its momentum, surging by 1.46% to reach the 62,816 level. The positive trend in the market was attributed to the initiation of the formation of provincial governments. The Punjab Assembly held its first session on this day, while the Sindh Assembly is scheduled to convene tomorrow, where elected representatives will take their oath.
Investor confidence received a significant boost as the political landscape progressed smoothly towards the establishment of governments at both the federal and provincial levels. Additionally, news of Pakistan’s intention to seek at least US$6 billion from the International Monetary Fund (IMF) to assist in repaying dollar debt due this year, coupled with the IMF’s commitment to collaborate with the new Pakistani government to ensure macroeconomic stability, further stimulated the market.
Market participants showed increased engagement, with the average traded volume and value reaching 378 million shares (up by 17% on a day-on-day basis) and Rs16 billion (up by 15% on a day-on-day basis), respectively. KOSM emerged as today’s volume leader with 16 million shares, closing at its upper limit.
In the Topline Weekly Review, it was highlighted that the KSE-100 Index recorded a 5% gain on a week-on-week basis. This surge was attributed to the agreement between the Pakistan Muslim League-Nawaz (PML-N) and the Pakistan Peoples Party (PPP) on power-sharing and the formation of the federal government. The resolution of ambiguity regarding the formation of the government, given that no political party secured a clear majority in the recent general election, contributed to the positive sentiment. The average daily traded volume and value for the week stood at 338 million shares and Rs12.7 billion, respectively.
Key developments during the week included the announcement of a Current Account Deficit for January at US$269 million, a shift from the Current Account Surplus of US$404 million in December 2023. Furthermore, in the T-Bill auction held during the week, the government successfully raised Rs361 billion against a target of Rs300 billion. Yields in the auction increased in the range of 25 to 126 basis points.
As the week concluded, the Pakistani stock market demonstrated resilience and bullish momentum, driven by political developments, positive economic indicators, and increased investor confidence. The focus now shifts to the upcoming sessions of provincial assemblies and the unfolding economic landscape, with stakeholders closely monitoring the evolving situation.
