Karachi, March 19, 2024 – The Pakistan stock market witnessed a significant upswing on Tuesday, gaining 612 points as bullish sentiment swept through the trading floor, marking a return of investor confidence.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 65,503 points, showing a robust increase from the previous day’s closing of 64,891 points. Analysts at Topline Securities Limited noted the resurgence of bulls at the local bourse, as the market opened on a positive note and continued its upward trajectory throughout the trading session. The KSE-100 index reached an intraday high of 65,502.59 points, marking an impressive gain of 612.09 points by the closing bell.
This surge in market performance can be attributed to several factors, with yesterday’s decision by the State Bank of Pakistan (SBP) to maintain the monetary policy rate unchanged at 22 percent playing a significant role. The SBP’s decision provided a boost to investor confidence, signaling stability in monetary policy and economic conditions. Additionally, whispers of institutional buying circulated within the market, further bolstering positive sentiment and contributing to the upward momentum.
A widespread surge of buying activity was observed across various sectors, with Banks, Fertilizer, and E&P sectors emerging as the primary beneficiaries of the day’s bullish trend. Notable contributions to the index came from stocks including MCB, MEBL, HMB, BAHL, EFERT, FFC, POL, and MARI, collectively adding 319 points to the overall index.
Investor interest was particularly notable in the banking sector, where stocks such as HMB (+4.85%), MCB (+3.09%), MEBL (+2.52%), and UBL (+0.80%) closed higher than their previous day’s values. This bullish sentiment reflects investors’ confidence in the banking sector’s performance and its potential for growth in the near future.
Trading activity remained robust throughout the session, with over 322.26 million shares changing hands at the bourse. The total value of shares traded amounted to Rs17 billion, indicating substantial market participation. Leading the volumes chart were stocks such as WLT, TELE, and BOP, with trading volumes exceeding 64 million shares.
The significant surge in the Pakistan stock market underscores the resilience and attractiveness of the country’s equities to investors, despite ongoing economic challenges. As the market continues to witness positive momentum, investors remain optimistic about the potential for further gains in the near term.
In conclusion, the return of bullish sentiment to the Pakistan stock market, fueled by factors such as stable monetary policy and institutional buying, has led to a notable increase in market performance. With sectors like banking leading the charge, investor confidence remains high, signaling a positive outlook for the country’s equities market in the days ahead.
