Karachi, January 22, 2024 – The Pakistan stock market witnessed a significant surge on Monday as the benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) gained 657 points, closing at 63,939 points.
This notable increase, representing a 1.04 percent rise from last Friday’s closing at 63,282 points, is attributed to substantial buying activity during the trading day.
Analysts at Topline Securities Limited reported that Pakistan equities kicked off the week on a positive note, with the KSE 100 index closing at 63,939 levels, showcasing a robust upward movement. The latter half of the trading session witnessed a surge in buying momentum, particularly after reports circulated on various media channels regarding the Finance Ministry’s consideration to issue Rs. 1.25 trillion to the energy sector for the settlement of circular debt.
This significant development had a profound impact on energy stocks, leading to a strong rally. Both Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL) hit their upper limit for the day. Moreover, Bank Alfalah Limited (BAHL) also experienced an upper circuit, driven by anticipation of better financial results and a promising dividend announcement following their scheduled Board of Director Meeting on January 31, 2024.
As a result of these positive movements, OGDC, PPL, BAHL, Hub Power Company (HUBC), and Mari Petroleum Company Limited (MARI) collectively contributed 546 points, further bolstering the overall index.
The trading session saw over 296 million shares changing hands at the bourse, with a total value reaching Rs12.5 billion. K-Electric Limited (KEL) led the volumes chart, with the trading of over 97.7 million shares.
Market observers noted that the injection of funds into the energy sector for circular debt settlement and the anticipation of positive corporate outcomes have played a pivotal role in attracting investors to the stock market. The rally in energy stocks, in particular, demonstrates the market’s responsiveness to government initiatives and potential corporate performances.
The upbeat sentiment in the stock market reflects investor confidence, and analysts anticipate that the positive momentum may continue if such favorable developments persist. However, market participants are advised to stay vigilant and monitor upcoming corporate announcements and government policies, which can significantly influence market dynamics. As Pakistan’s stock market navigates these dynamic conditions, today’s surge serves as a testament to the resilience and responsiveness of the nation’s financial markets.
