Karachi, April 9, 2024 – Pakistan stocks soared to new heights on Tuesday, surpassing the psychological barrier of the 70,000-point level for the first time in the country’s history.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) witnessed a remarkable increase of 695 points, reaching 70,315 points from the previous day’s closing of 69,620 points.
Analysts at Topline Securities Limited noted that the KSE-100 Index rallied for the second consecutive day of the week, with a gain of 695 points, closing at the historic level of 70,315 points, marking a 1 percent increase. This surge in the market can be attributed to the commitment demonstrated by Saudi Arabia to expedite the implementation of the first wave of an investment package worth $5 billion.
The agreement includes increasing Saudi deposits in the Central Bank of Pakistan from $3 billion to $5 billion and injecting investments in vital sectors such as oil refinery (Pakistan oil and gas companies’ joint venture with Saudi Aramco) and copper mines (Reko Dig).
Significant positive contributions to the index came from companies such as FFC, MEBL, HUBC, MARI, and EFERT, collectively contributing 471 points. FFC, in particular, gained significantly, closing at its upper limit following reports that the company had increased Urea prices by Rs633/bag to Rs4,400/bag. WTL emerged as the volume leader of the day, with 34 million shares traded.
Reflecting on the progress of the stock market in the first two days of the current week ahead of Eid holidays, the KSE 100 Index gained by 2.77 percent on a week-on-week basis. Prime Minister’s visit to Saudi Arabia with a delegation garnered investor interest in the market, while Saudi Arabia’s commitment to expedite the implementation of the $5 billion investment plan provided further stimulus to the market.
The upcoming Finance Minister’s trip to Washington on April 13 to attend the World Bank and IMF spring meeting, along with likely discussions with the IMF for a new program, also instilled confidence among investors. During the week, remittance numbers for the month of March clocked in at US$2.95 billion, marking a 31% month-on-month increase and a 16% year-on-year increase – the highest monthly remittances recorded in 22 months.
The average daily traded volume and value during the week stood at 362 million shares and Rs.16.27 billion, respectively, reflecting robust activity and investor participation in the market.
The achievement of crossing the 70,000-point level in Pakistan’s stock market underscores the confidence of investors in the country’s economic prospects and the positive impact of strategic partnerships and investment commitments. As Pakistan’s economy continues to attract foreign investments and demonstrate resilience, the stock market serves as a barometer of the nation’s progress and potential for sustained growth.
