Karachi, February 26, 2024 – Pakistan stocks witnessed a robust uptrend on Monday, gaining 490 points in bullish trading following the election of chief ministers in two provinces.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 63,306 points, marking a significant rise from the previous Friday’s closing figure of 62,816 points.
Maaz Mulla, a senior trader at Topline Securities Limited, noted that the KSE-100 index started the day on a positive note, experiencing an initial surge with an intra-high of +916.69 points (up by 1.46%). It eventually settled at an impressive level of 63,305.93, reflecting a gain of 490.12 points.
The bullish momentum in the market is attributed to the smooth progression of the provincial government formation process. Notably, the Punjab Assembly elected Maryam Nawaz as Chief Minister, and the Sindh Assembly elected Murad Ali Shah as Chief Minister for Sindh. Mulla stated, “The smooth progression towards government formation at provincial levels has bolstered investor confidence.”
Post-general elections, the establishment of governments at both national and provincial levels is underway. Simultaneously, the Election Commission of Pakistan (ECP) is preparing for the presidential election scheduled for March 9th.
In corporate updates, PPL (-0.79%) released its 2QFY24 results, boasting an impressive EPS of Rs14.39, a substantial 75% YoY increase, along with a DPS of Rs. 2.5 per share. ENGRO (+0.61%) disclosed its FY23 results, revealing a consolidated EPS of Rs63.90 and a cash payout of Rs2, resulting in a full dividend of Rs48.
In the cement sector, DGKC (-0.21%) and FCCL (+0.11%) reported their 1HFY24 results, with EPS figures of Rs2.41 and 1.08 respectively, and no cash payout. Investor participation surged, with an average traded volume and value reaching 452.645 million shares and Rs16.4 billion, respectively. Notable volume leaders for the day included KEL, KOSM, and WTL, with a cumulative 130 million shares changing hands.
The bullish trend in the stock market reflects positive sentiment among investors, driven by political developments and corporate financial results. As the government formation process continues and the presidential election approaches, market participants will closely monitor these factors for potential impacts on market dynamics in the coming days.
