Karachi, February 7, 2024 – The Pakistan stock market witnessed a significant upswing on Wednesday, gaining 345 points in anticipation of the forthcoming general elections scheduled for February 8, 2024.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 64,144 points, marking an impressive rise from the previous day’s closing at 63,799 points.
Market analysts and experts attribute the positive momentum to the prevailing optimism surrounding the upcoming general elections. Tresmark, a financial terminal, noted that the market opened on a positive note and sustained its upward trajectory throughout the trading session.
During the day, the KSE-100 index experienced fluctuations, ranging between 63,927 and 64,197 points, ultimately settling at 64,144 points. The noteworthy gain of 345 points was supported by a total turnover of 194 million shares, amounting to a traded value of Rs 11 billion.
Analysts at Ismail Iqbal Securities echoed the sentiment, stating that the benchmark index closed positively, extending the ongoing positive streak. Investors, anticipating optimistic outcomes from the 2024 elections, were actively engaged in value buying. Trading volumes increased to 195 million shares compared to the previous session’s 168 million shares.
On a day-to-day (DoD) basis, the KSE-100 index exhibited a growth of 0.54 percent, closing at 64,144 points. Notably, the power generation and distribution, commercial banks, and fertilizer sectors played a significant role in today’s session, collectively contributing 243 points to the index.
The surge in the stock market reflects investor confidence and heightened expectations as the nation approaches the general elections. With the index closing at an elevated level, market participants seem optimistic about the potential outcomes and are positioning themselves strategically in sectors expected to benefit from the election results.
As the political landscape evolves, investors are closely monitoring market dynamics, and the upcoming elections are anticipated to have a considerable impact on stock performance. The positive trend observed in trading volumes and sectoral contributions suggests a robust investor appetite and a positive outlook for the market in the lead-up to the crucial electoral event. Market participants are advised to stay vigilant, considering the potential for increased volatility in the coming days leading up to and following the general elections.
