Bulls Return to PSX with 448-Point Gain in KSE-100 Index

Bulls Return to PSX with 448-Point Gain in KSE-100 Index

Karachi, July 23, 2024 – The Pakistan Stock Exchange (PSX) saw a resurgence of bullish sentiment on Tuesday, with the benchmark KSE-100 index recording a significant gain of 448 points.

The index closed at 78,987 points, up from the previous day’s closing of 78,539 points.

The KSE-100 index had previously reached an all-time high of 81,840 points on July 18, 2024, but had experienced a sharp decline over the next two trading sessions. Today’s positive momentum marks a notable recovery from those recent losses.

Analysts at Topline Securities Limited noted that the PSX demonstrated positive momentum throughout the day, with the index peaking at 79,585 points before settling at 78,987 points. This gain of 448 points represents a 0.57% increase.

The upward trend at the PSX was driven by key sectors such as Exploration & Production (E&P), Banking, and Auto. Leading companies in these sectors, including HUBC, OGDC, MARI, UBL, and MTL, collectively contributed 228 points to the overall gain.

Trading activity on the exchange was robust, with 315 million shares traded, amounting to a total value of Rs 17 billion. Among the most actively traded stocks, PIAHCLA stood out with over 22 million shares changing hands.

Market participants were optimistic about the renewed upward trajectory, attributing the gains to a combination of favorable economic indicators and investor confidence. The recent approval of an IMF loan package and improved foreign exchange reserves have bolstered market sentiment.

Investors were particularly enthusiastic about the performance of the E&P sector, which benefited from rising global oil prices. The banking sector also saw significant gains, driven by expectations of favorable monetary policy decisions and strong quarterly earnings reports. The auto sector contributed to the positive trend, buoyed by increased demand and positive sales figures.

Analysts believe that the market’s performance is indicative of a broader recovery trend, with potential for further gains in the coming days. However, they also cautioned that external factors such as global economic conditions and geopolitical developments could impact market dynamics.

The PSX’s performance today reflects a renewed sense of optimism among investors, with the market showing resilience and the potential for sustained growth. As trading continues, market watchers will be keenly observing sectoral movements and economic indicators to gauge the market’s future direction.

In summary, the PSX’s 448-point gain in the KSE-100 index on July 23, 2024, underscores a positive shift in investor sentiment, driven by strong performances in key sectors and favorable economic developments. The market’s robust trading activity and upward momentum suggest a promising outlook for the near term.