The Pakistan Stock Exchange (PSX) witnessed a substantial uptrend on Thursday, as the benchmark KSE-100 index surged by an impressive 944 points, closing at 35,581 points.
This marked the third consecutive session of gains, resulting in a notable 6.4 percent increase over a two-day period – a remarkable feat not observed in a decade.
Analysts from Arif Habib Limited have attributed this significant upswing in the equity market to positive sentiments surrounding the eagerly awaited State Enterprise Fund. Moreover, increased clarity on several fronts, including the resolution of uncertainties related to interest rate hikes, recent rupee devaluation, and the MSCI Review, has contributed to a renewed sense of optimism among investors.
The KSE-100 index rose by 993 points during the trading session, ultimately closing at +944 points above the previous day’s closing figure. This robust performance brings the total gain to an impressive 2,415 points over the past three days, underscoring the remarkable momentum in the equity market.
The banking sector led in trading volumes, with 33 million shares exchanged, primarily driven by the Bank of Punjab (BOP) recording 16 million shares, albeit within a narrow price range. Following closely behind, the cement sector recorded 32 million shares, with Maple Leaf Cement Factory (MLCF) contributing 11 million shares.
Various sectors played a pivotal role in the overall market performance, with significant contributions from Banks (+247 points), Fertilizer (+216 points), Exploration & Production (E&P) (+111 points), Cement (+100 points), and Oil & Gas Marketing Companies (O&GMCs) (+71 points).
The trading volume witnessed a notable increase from 203 million shares to 227.7 million shares, representing a 12 percent day-on-day growth. Meanwhile, the average traded value surged significantly from US$35.2 million to US$47.3 million, marking a substantial 34 percent day-on-day increase.
Key stocks that significantly contributed to the trading volumes included BOP, UNITY, KEL, LOTCHEM, and WTL, collectively forming 32 percent of the total volumes.
Stocks that made positive contributions to the market included ENGRO (+70 points), Fauji Fertilizer Company (FFC) (+66 points), Habib Bank Limited (HBL) (+53 points), Lucky Cement Limited (LUCK) (+51 points), and Pakistan Oilfields Limited (POL) (+51 points). Conversely, stocks that made negative contributions included NESTLE (-19 points), Oil and Gas Development Company Limited (OGDC) (-6 points), K-Electric Limited (KEL) (-4 points), Pakistan International Bulk Terminal Limited (PIBTL) (-1 point), and ICI Pakistan Limited (-1 point).
The substantial gains in the equity market reflect a positive shift in investor sentiment, driven by the anticipation of the State Enterprise Fund and the resolution of key uncertainties. This surge signals a promising outlook for the Pakistani stock market, providing a favorable environment for investors in the days to come.
