On Wednesday, the benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) recorded a notable gain of 156 points, closing at 40,058 points as opposed to the previous day’s closing at 39,902 points.
The increase in the index is attributed to the anticipated positive outcome of the mini-budget, which is scheduled to be announced later today.
Financial analysts at Arif Habib Limited noted that the market exhibited a positive trend, buoyed by the expectation of favorable developments in the forthcoming mini-budget. This surge in investor confidence was also reflected in increased trading volumes and foreign investment activity.
The trading session was marked by periods of excitement, with heightened activity observed during the early part of the session and in the last hour of trading. Sectors and specific stocks that attracted significant investor attention included banking, chemicals, and power companies. Notably, Habib Bank Limited (HBL) and United Bank Limited (UBL) in the banking sector, Nimir Resins Limited (NRSL) and Lotte Chemical Pakistan Limited (LOTCHEM) in the chemical sector, and K-Electric Limited (KEL) in the power sector were the primary drivers of trading volume.
Banks accounted for a substantial trading volume, with a total of 29 million shares changing hands. The chemical sector also experienced high trading activity, with 24 million shares being traded. The sectors that contributed most significantly to the day’s market performance included Banks (+80 points), Autos (+32 points), Oil and Gas Marketing Companies (O&GMCs) (+27 points), Power (+20 points), and Pharma (+12 points).
Furthermore, the day witnessed a significant increase in trading volumes, with the number of shares traded rising from 136.8 million shares to 178.9 million shares, representing a 31 percent increase day-on-day (DoD). While trading volumes increased, the average traded value also saw a rise of 8 percent, reaching $52.8 million compared to the previous day’s figure of $49 million.
Several stocks played a significant role in driving trading volumes, with K-Electric Limited (KEL), Bank of Punjab (BOP), TRG Pakistan Limited (TRG), Pakistan Electric Industries Limited (PAEL), and Nimir Resins Limited (NRSL) collectively accounting for 31 percent of the total trading volumes.
The positive sentiment in the PSX was largely underpinned by the anticipation of a favorable outcome from the mini-budget, which is expected to address various fiscal and economic measures. Investors were particularly upbeat about the prospects of positive reforms and incentives that may be introduced through the mini-budget, which has fueled trading activity and overall market optimism.
As the announcement of the mini-budget approaches, market participants will closely monitor the developments to gauge their potential impact on the financial landscape and the performance of the PSX in the coming days. The PSX remains a key barometer of economic sentiment in Pakistan, and investor reactions to fiscal policy changes are closely watched for insights into the country’s economic trajectory.