Karachi, March 25, 2024 – The Pakistan Stock Exchange (PSX) witnessed a significant surge on Monday, with the benchmark KSE-100 index jumping by 374 points, fueled by reports of substantial investment in the energy sector of the country.
This bullish trend at the PSX reflects growing investor confidence in Pakistan’s energy landscape and its potential for robust growth.
The KSE-100 index closed at 65,526 points, marking a substantial increase from last Friday’s closing figure of 65,152 points. Analysts at Topline Securities noted that the market concluded the trading session on a positive note, with an intraday high of 504.67 points and an intraday low of -149.91 points, ultimately settling at 65,525.64, registering a gain of 373.82 points.
The surge in the stock market was primarily driven by the Oil and Exploration sector, which led the market gains following reports of the Pakistani government’s plans to attract investments from friendly nations for the nation’s largest hydrocarbon explorer. As a result, Oil and Gas Development Company (OGDC) saw a rise of 2.90%, while Pakistan Petroleum Limited (PPL) witnessed a gain of 1.66%, contributing significantly to the overall market rally.
In addition to the energy sector, banking, Exploration and Production (E&P), fertilizer, and power sectors also made notable contributions to the index’s upward trajectory. Companies such as Hub Power Company (HUBC), National Bank of Pakistan (NBP), Engro Fertilizers (EFERT), and PPL collectively added 269 points to the index. However, some stocks including Systems Limited (SYS), Lucky Cement (LUCK), Habib Bank Limited (HBL), and Service Industries Limited (SRVI) faced selling pressure, resulting in a combined loss of 72 points.
Trading activity at the bourse remained vibrant, with approximately 260 million shares exchanged, valued at a total of Rs8.94 billion. Pakistan Telecommunication Company Limited (PTC), Hascol Petroleum Limited (HASCOL), and K-Electric Limited (KEL) emerged as leaders in terms of volume, with over 68 million shares traded collectively.
The surge in the stock market reflects investor optimism driven by positive developments in the energy sector, particularly the government’s efforts to attract investments to enhance exploration and production activities. The prospect of increased investment in this vital sector bodes well for Pakistan’s economic growth and energy security, thereby bolstering investor confidence in the overall market.
Looking ahead, investors are likely to closely monitor developments in the energy sector, as well as other key segments of the economy, for further cues on market direction. With ongoing efforts to attract investments and stimulate economic growth, the Pakistani stock market remains poised for continued resilience and upward momentum in the foreseeable future.
