Karachi, February 22, 2024 – The Pakistan Stock Exchange (PSX) witnessed a robust recovery on Thursday as the benchmark KSE-100 index surged by 355 points, closing the day at 61,914 points and marking a notable uptick from the previous day’s closing of 61,559 points.
Analysts from Topline Securities Limited reported that the positive momentum observed in the market continued from the previous day, with Pakistan equities initiating the trading session on a positive note. The bullish trend persisted throughout the day, reflecting a renewed confidence in the market. The 0.58 percent gain in the KSE-100 index is seen as a testament to the growing optimism among investors.
The driving force behind the buying momentum appears to be a consensus emerging on the formation of a new government. Major political parties have reportedly reached an agreement and communicated their plans for an upcoming coalition setup. This development has instilled confidence in investors, leading to across-the-board buying throughout the trading session.
As a result of this positive sentiment, key sectors such as Technology, Banking, and Fertilizer experienced substantial gains, contributing significantly to the overall index performance. Notable contributors to the index included companies like SYS, MEBL, TRG, EFERT, and UBL, collectively adding 367 points.
The trading activity at the PSX remained vibrant, with over 324 million shares changing hands during the day. The total traded value reached Rs13.9 billion, underscoring the increased investor participation in the market. Power Cement (PAEL) led the volumes chart with the trading of over 23.1 million shares.
Analysts believe that the consensus on the formation of a new government has played a pivotal role in boosting investor confidence. The expectation of political stability and continuity in economic policies has led to increased interest in the stock market.
While the recovery in the KSE-100 index is a positive development, market participants and analysts remain vigilant, closely monitoring any potential shifts in market dynamics. Despite the positive momentum, uncertainties persist, and stakeholders are mindful of the need for sustained efforts to address underlying economic challenges.
As the market continues to navigate these dynamics, the recent surge in the KSE-100 index serves as an encouraging sign for investors and businesses alike. The resilience displayed by the market underscores its ability to respond positively to favorable developments, providing a ray of optimism for the economic landscape in Pakistan.
