Karachi, October 15, 2024 – Pakistan stocks saw a notable surge on Tuesday, with the benchmark KSE-100 index climbing by 579 points, driven by positive sentiment surrounding the ongoing Shanghai Cooperation Organization (SCO) summit in Islamabad.
The index closed at 85,840 points, up from the previous day’s close of 85,261 points, marking an increase of 0.68%.
According to analysts at Topline Securities Limited, the KSE-100 index’s rise reflected growing optimism among investors as the international conference created expectations of enhanced trade relations, new investment opportunities, and strengthened economic ties with member countries of the SCO.
Despite a pullback in the fertilizer and exploration and production (E&P) sectors earlier in the session, investor enthusiasm remained high throughout the day. Stocks in these sectors, including MARI Petroleum, Engro Fertilizers (EFERT), Oil & Gas Development Company (OGDC), Attock Refinery Limited (ATRL), and Fauji Fertilizer Company (FFC), were key contributors to the market’s gains, collectively adding 425 points to the index.
The ongoing SCO summit, which brings together key regional players to discuss issues related to economic cooperation, security, and trade, has sparked hopes of new foreign investments and collaboration. Investors are particularly keen on potential developments in the energy, infrastructure, and technology sectors, which could boost economic growth in Pakistan.
Trading activity on the Pakistan stocks was also robust, with 421 million shares changing hands, amounting to a total value of Rs 24 billion. The high trading volume indicates strong participation at Pakistan stocks, with investors capitalizing on the positive momentum. Pakistan Telecommunication Company Limited (PTCL) was the most actively traded stock of the day, with 37 million shares exchanged.
Analysts believe the bullish trend at Pakistan stocks could continue if further positive news emerges from the SCO summit, particularly if agreements or partnerships are announced. “The ongoing summit has boosted investor confidence, and any tangible outcomes from these discussions could provide a further catalyst for market growth,” remarked an equity trader.
However, some market watchers also caution that while the immediate outlook is positive, external factors such as global economic conditions and oil price volatility could still impact market performance in the coming weeks.
Overall, the significant gains in the stock market reflect renewed optimism about Pakistan’s economic prospects, bolstered by international cooperation and regional partnerships fostered through forums like the SCO.