Karachi, May 29, 2023: Pakistan’s equities experienced a significant gain of 376 points on Monday as investors anticipated substantial bonuses from listed companies, aimed at minimizing tax liabilities.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) concluded the trading session at 41,340 points, marking a notable increase from the previous Friday’s closing of 40,964 points.
Market analysts at Topline Securities noted that the bullish performance of Pakistan equities was driven by expectations of forthcoming announcements regarding substantial bonuses by listed companies, which are perceived as a means to mitigate the impact of the anticipated implementation of a “tax on reserves” in the upcoming budget.
The prevailing anticipation contributed to a positive market sentiment throughout the day, enabling the index to remain in the green zone, ultimately settling at 41,340 points, representing a gain of 376 points or 0.92% for the day.
Investors displayed buying momentum across various sectors, particularly in technology, fertilizer, exploration and production (E&P), and cement stocks. Notably, SYS, TRG, ENGRO, PSEL, and DAWH made significant positive contributions to the index, collectively adding 167 points. Conversely, NESTLE, NBP, and SEARL experienced some profit-taking, resulting in a collective loss of 22 points.
Of particular significance, the trading volume at the bourse reached over 346 million shares, marking the highest level in nearly four months. The total value of trades stood at approximately Rs6.4 billion. Wireless Telecommunication Limited (WTL) dominated the volumes chart, with over 193 million shares traded.
This surge in Pakistan’s equities market reflects investors’ positive response to the anticipation of corporate bonuses, which are seen as a strategic move to alleviate the tax burden. The market’s bullish performance indicates investors’ optimism and willingness to take advantage of potential gains in various sectors.
(Note: This news report is based on fictional data and should not be considered as actual market information or investment advice.}