Karachi, August 22, 2024 – Pakistan equities continued its upward trajectory on Thursday, with the benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) rising by 532 points to close at 78,793 points. This marked a significant gain from the previous day’s closing of 78,261 points, reflecting investor confidence and sustained market momentum.
Analysts at Topline Securities Limited attributed the day’s positive performance to the recent treasury bill auction, where the government substantially reduced cutoff yields by up to 148 basis points. This move has fueled investor optimism, particularly in sectors such as cement and steel, which are expected to benefit from an anticipated rate cut in the upcoming monetary policy.
Key players in the cement sector, including DG Khan Cement (DGKC), Fauji Cement Company Limited (FCCL), and Kohat Cement Company Limited (KOHC), posted strong gains of 5.59%, 4.48%, and 4.10% respectively. Similarly, in the steel sector, Crescent Steel & Allied Products Limited (CSAP) surged by 10%, while Amreli Steels Limited (ASL) and Mughal Iron & Steel Industries Limited (MUGHAL) saw increases of 4.63% and 3.10%, respectively.
Notably, major stocks such as Fauji Fertilizer Company (FFC), Service Industries Limited (SRVI), National Bank of Pakistan (NBP), Pakistan State Oil (PSO), and Lucky Cement (LUCK) collectively contributed 355 points to the index. On the other hand, some profit-taking was observed in stocks like Habib Bank Limited (HBL), Engro Corporation (ENGRO), Millat Tractors Limited (MTL), and Meezan Bank Limited (MEBL), which led to a deduction of 132 points from the index.
Trading activity remained robust, with over 797 million shares changing hands, amounting to a total value of Rs 16.8 billion. Worldcall Telecom Limited (WTL) led the volume chart, recording over 140 million shares traded, highlighting strong investor interest.
The positive momentum at the PSX reflects growing market confidence, underpinned by favorable economic developments and investor anticipation of supportive monetary policy measures. The significant reduction in treasury yields and the strong performance of key sectors indicate that the market is poised for continued growth in the near term.
As the market moves forward, analysts will be closely monitoring developments in the monetary policy and sectoral performances, with expectations that the KSE-100 index could maintain its upward momentum in the coming sessions.
