Karachi, October 21, 2024 – The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) soared by over 800 points on Monday, crossing the 86,000 mark in response to heightened political clarity. The index closed at 86,057 points, a notable increase from last Friday’s closing of 85,250 points, marking a gain of 807 points or 0.95%.
Analysts at Topline Securities Limited attributed the positive market momentum to the reduction in political uncertainty, following the Senate’s approval of the 26th Constitutional Amendment Bill 2024. This key legislation, which passed with a two-thirds majority in the Senate on Sunday evening, was subsequently ratified by the National Assembly, signaling a significant step toward political stability in the country.
The passage of the bill has been widely viewed as a pivotal development that reassured investors and market participants, spurring renewed confidence in the stock market. The restoration of political certainty has lifted market sentiment, enabling the KSE-100 index to regain traction and post substantial gains.
Key contributors to the index’s surge included prominent stocks such as Millat Tractors Limited (MTL), United Bank Limited (UBL), Attock Refinery Limited (ATRL), Hub Power Company (HUBC), and Pioneer Cement (PIOC). These stocks collectively added 274 points to the index, underscoring their significant influence on Monday’s performance.
Trading activity at the PSX was robust, reflecting the renewed investor confidence. The KSE-100 index saw the exchange of 474 million shares, with a total trading value of Rs 19 billion. K-Electric Offshore Marine (KOSM) emerged as the most actively traded stock, with an impressive 59 million shares changing hands, highlighting its dominance in the day’s trading volume.
Market analysts noted that the approval of the constitutional amendment helped alleviate concerns surrounding political uncertainty, which had previously weighed on investor sentiment. The surge in the KSE-100 index also reflects optimism that the political landscape is stabilizing, which could create a more favorable environment for economic growth and investment.
As Pakistan navigates through its political challenges, the stock market’s strong response suggests that investors are cautiously optimistic about the country’s prospects. The robust trading activity and significant gains in key stocks indicate that market participants are hopeful about sustained political and economic stability in the months ahead.
The continued upward momentum of the KSE-100 index will likely depend on further developments in the political sphere and the overall economic outlook. Nonetheless, the market’s performance on Monday provides a positive signal for investors and the broader financial landscape.