Pakistan stocks experienced a bullish trend on Thursday, gaining 364 points despite ongoing political tension related to a court case on provincial election.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 41,464 points, showing an increase of 364 points from the previous day’s closing of 41,100 points. The positive momentum continued throughout the day, reaching an intraday high of 419.84 points.
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According to analysts at Arif Habib Limited, the bullish trend was primarily due to positive outcomes on the political front, leading investors to participate actively in the stock market. Additionally, above-expected financial results announced by the Banking, Technology, and Cement sector boosted investor confidence, leading to a surge in the accumulation of strong fundamental stocks.
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The performance of the stock market was primarily driven by sectors such as Inv. Banks / Inv. Cos. / Securities Cos., Commercial Banks, Cement, E&P’s, and Fertilizer, which contributed to the index’s gain of 364 points. However, volumes decreased from 186.9 million shares to 169.1 million shares (-9.5 percent DoD), but the average traded value increased by +7.9 percent to USD 22.0 million as against USD 20.4 million.
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Some of the significant contributors to the volumes were BAFL, MLCF, PRL, WTL & TREET. Despite the ongoing political tension, investors remain optimistic about the stock market’s future prospects. The current situation suggests that the Pakistan stock market is relatively resilient and has the potential to perform well despite the challenging environment.
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In conclusion, the Pakistan stock market showed a bullish trend despite ongoing political tension, thanks to the positive outcomes on the political front and strong fundamentals of some of the sectors. The stock market’s resilience is an encouraging sign, and investors are optimistic about its future prospects.
