KARACHI: The Pakistan stocks witnessed a robust surge on Wednesday, with the benchmark KSE-100 index of Pakistan Stock Exchange (PSX) gaining 353 points to close at 46,933 points. This positive movement was fueled by strong contributions from key sectors of the economy.
Analysts at Arif Habib Limited noted that the stock market confidently breached the 47,000 level, closing the session up a significant 353 points. This optimism stemmed from a combination of positive factors.
Cement Takes the Lead:
The Cement sector emerged as the top performer, driving the index up by 160 points. Anticipation of a potential cement price increase and growth in dispatches fueled investor confidence in this sector.
Fertilizer, Banks, and Power Join the Rally:
Healthy contributions also came from the Fertilizer, Banks, and Power sectors. This broad-based rally underscores the positive sentiment across different industries.
Independent Power Producers (IPPs) Keep Momentum Going:
The recent agreement signed between IPPs and the government continued to generate investor interest. HUBC, a prominent player in the power sector, witnessed a price increase building on yesterday’s gains.
Energy Sector Benefits from Oil Price Rise:
The international rise in crude oil prices provided a boost to Exploration and Production (E&P) stocks, adding 102 points to the index.
High Trading Activity:
Trading activity on the PSX saw a significant increase, with volumes jumping from 468.1 million shares to 616.3 million shares, representing a 32% rise compared to the previous day. The average traded value also witnessed a notable increase of 27%, reaching US$184.2 million from US$145.2 million.
Leaders and Laggards:
KEL led the pack in terms of traded volume with 59 million shares, followed by PRL (39.9 million) and HASCOL (32.7 million).
Sectors contributing most significantly to the index performance included Cement (+160 points), E&P (+102 points), Pharma (+36 points), Textile (+35 points), and Banks (+32 points).
Market Movers:
Stocks with positive contributions to the index included MARI (+60 points), LUCK (+49 points), CHCC (+30 points), POL (+27 points), and SEARL (+26 points). Conversely, TRG (-41 points), PAKT (-11 points), INIL (-8 points), GHGL (-8 points), and HASCOL (-6 points) experienced declines.
The PSX’s robust performance on Wednesday highlights the market’s confidence in the prospects of various sectors within the Pakistani economy. The broad-based rally, increased trading activity, and positive movement by key sectors indicate a potentially bullish trend for the Pakistani stock market.
