Pakistan Stocks Climb 1244 Points as Market Bullishness Returns

Pakistan Stocks Climb 1244 Points as Market Bullishness Returns

Karachi, May 3, 2024 – Pakistan stocks witnessed a significant boost on Friday, with the benchmark KSE-100 index of Pakistan Stock Exchange (PSX) soaring by 1244 points, closing at 71,902 points.

This marks a substantial upturn from the previous day’s closing at 70,658 points, reflecting renewed investor confidence and a bullish momentum across the market.

Muhammad Rizwan, Director of Brokerage at Chase Securities Limited, commented on the market’s performance, stating, “After a downturn in the previous session, the Pakistan stocks showed remarkable resilience today, buoyed by a resurgence of bullish sentiment. The session started strong and maintained its momentum throughout the day.”

Leading the charge in this bullish wave were the Oil and Gas Exploration sectors, with major companies like Pakistan Petroleum Limited (PPL) and Oil & Gas Development Company (OGDC) playing pivotal roles. These sectors alone contributed 346 points to the overall gain. Additionally, significant contributions came from other sectors: commercial banks added 174 points while cement, power, and fertilizer sectors together pushed up the index by 386 points.

The day’s trading closed with the KSE-100 index up by 1.76 percent at 71,902 points. Trading volumes also saw a significant jump, with the value traded on the PSX increasing by 45% compared to the previous session, totaling around PKR 35 billion.

Investor sentiment was particularly buoyed by the announcement of an upcoming visit from a Saudi investor, which sparked substantial buying in PPL and OGDC stocks. This optimism was further supported by positive news surrounding the Reko Dig deal with Saudi investors, fueling expectations of further foreign investment inflows.

The cement sector also saw heightened activity, spurred by expectations of a potential drop in inflation as indicated by upcoming Consumer Price Index (CPI) figures, which are projected to show a decrease ranging from 1% to 6%.

Looking forward, market experts anticipate the bullish momentum to continue, bolstered by potential investments from the Gulf Cooperation Council (GCC) countries and optimistic prospects for a new program negotiation with the International Monetary Fund (IMF). Such developments are expected to further strengthen market confidence and attract more investments into Pakistan’s stock market, sustaining its upward trajectory.