Karachi, February 19, 2024 – The Pakistan stock market witnessed a significant upswing on Monday, gaining 587 points amid ongoing volatility in the political landscape.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 60,460 points, showing a noteworthy surge from the previous Friday’s closing of 59,873 points.
Financial analysts at Arif Habib Limited reported that the market experienced an intraday low of 59,191 points early in the trading session before staging a robust rally, ultimately closing with a 1.18 percent increase on a day-on-day (DoD) basis. This recovery was indicative of the market’s resilience, bouncing back from initial setbacks.
The positive momentum was reflected in the performance of individual stocks, with 51 stocks recording gains and 39 witnessing declines. Notably, OGDC PA (+7.04%), PPL PA (+6.42%), and HUBC PA (+2.36%) emerged as the major contributors to the overall index gains, demonstrating strong investor interest in these securities.
Despite the market’s positive response, the political situation in the country remains dynamic, contributing to the prevailing volatility. Analysts suggest that the fluidity of the political landscape is likely to keep the market on its toes in the near term.
Arif Habib Limited’s analysts provided insights into the market’s technical aspects, stating that the near-term resistance is anticipated at 62,000 points for the week. While the Monday rally is encouraging, they emphasized that there is still much work to be done to establish a sustainable upward trend. The market needs to overcome hurdles and exhibit a tradable bounce for a more optimistic outlook.
The analysts further highlighted the importance of breaching the liquidity level at 59,000 points to pave the way for a more substantial recovery. Achieving this milestone would set the stage for increased investor confidence and potentially attract more participation in the market.
Market participants are advised to remain vigilant and closely monitor developments on both the political and economic fronts. The continued volatility underscores the importance of staying informed and adapting to the evolving market conditions.
As the market strives for stability and positive momentum, investors are urged to exercise caution and consider the broader economic factors influencing the stock market. The coming days will likely be crucial in determining the trajectory of the market, and stakeholders are encouraged to stay tuned for further updates and expert analyses.
