Karachi, February 21, 2024 – The Pakistan stock market witnessed a significant upswing on Wednesday, closing with a gain of 1,095 points as political parties reached a consensus on the formation of a coalition government.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) concluded the trading session at 61,559 points, marking a notable increase from the previous day’s closing at 60,464 points.
Analysts at Topline Securities Limited reported that the market exhibited a positive trend throughout the day, with the index reaching an intraday high of 61,621 points and a low of 60,907 points. The substantial gain of 1,095 points, equivalent to a 1.81 percent increase, reflects the renewed confidence and optimism among investors.
The recent political developments, particularly the consensus among major political parties to form a coalition government, played a pivotal role in boosting market sentiment. Investors welcomed the news of political stability, anticipating that a coalition government would foster economic reforms and policy continuity.
Key contributors to the market surge included Oil and Gas Development Company Limited (OGDC), Lucky Cement Limited (LUCK), Pakistan Petroleum Limited (PPL), United Bank Limited (UBL), and TRG Pakistan Limited (TRG). These stocks collectively contributed to an additional 322 points on the index, highlighting the broad-based nature of the market rally.
The trading session saw robust activity, with a total of 362.7 million shares traded, amounting to a total value of Rs 12.4 billion. Bank of Punjab (BOP) emerged as the volume leader, trading approximately 35 million shares, indicating active participation from investors across various sectors.
The optimism in the stock market is seen as a positive response to the resolution of political uncertainties. The consensus on the formation of a coalition government is perceived as a step towards political stability, providing a conducive environment for economic growth and attracting investments.
While the stock market rally reflects immediate market sentiments, analysts are closely monitoring the evolving political landscape and its potential impact on economic policies and reforms. The coalition government’s ability to address economic challenges, implement reforms, and maintain stability will be crucial for sustaining investor confidence in the long run.
Market participants are anticipating further developments and announcements from the coalition government regarding its economic agenda and policy direction. The positive momentum in the stock market is expected to continue as investors seek opportunities in a more stable political environment.
As Pakistan navigates economic challenges and strives for sustained growth, the stock market’s reaction to political developments underscores the close interplay between politics and financial markets, emphasizing the importance of stable governance for a thriving economy.
