In a day marked by political uncertainty, Pakistan stocks managed to make gains, defying the prevailing political noise that had affected investor sentiment.
On Monday, the benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 41,718 points, showing a gain of 231 points compared to the previous Friday’s closing of 41,787 points.
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According to analysts at Arif Habib Limited, the PSX experienced a range-bound day at the beginning of the week. The benchmark KSE-100 index initially opened in the negative zone due to the country’s ongoing political upheaval. However, it eventually managed to turn positive by the end of the day. Investor engagement remained modest as market participants awaited political clarity.
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Despite the uncertain political environment, certain sectors contributed significantly to the market’s performance. The fertilizer sector gained 78.7 points, followed by commercial banks (+35.0 points), technology and communication (+24.4 points), investment banks/investment companies/securities companies (+23.7 points), and chemicals (+21.9 points).
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Trading volumes on the mainboard remained erratic, with third-tier equities continuing to lead the volume board. The total volume of shares traded increased from 89.5 million shares to 109.2 million shares, representing a 22.0 percent day-on-day increase. However, the average traded value decreased slightly by -0.4 percent to USD 11.88 million compared to USD 11.93 million.
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Several stocks played a significant role in driving the trading volumes. Companies such as WTL, TELE, HUMNL, LOTCHEM, and OGDC contributed significantly to the overall market activity.
The Pakistani stock market’s ability to register gains in the face of political noise showcases the resilience of investors and their willingness to navigate uncertain conditions. Market participants will likely continue to monitor the political developments closely for further clarity and its impact on the market in the coming days.
