Karachi, July 24, 2023 – The Pakistan stocks witnessed a significant surge on Monday as the benchmark KSE-100 index of Pakistan Stock Exchange (PSX) reached a 15-month high, closing at 46,055 points.
This marked an increase of 134 points from the last Friday’s closing level of 45,921 points.
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Ali Najib, Senior Analyst at Topline Securities, noted that the PSX has achieved yet another milestone by crossing the 46,000-point mark. This closing level was last seen on April 25, 2022, making it a momentous day for the Pakistani stock market.
The ongoing Bull Run has been instrumental in driving the market’s upward momentum, contributing to a gain of 4,602 points, or over 11%, since the announcement of the IMF SBA $3 billion arrangements.
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During trading hours, the KSE-100 index fluctuated in a range of 324 points, with investors opting to book partial profits in cyclical stocks while strengthening their positions in the banking sector stocks ahead of the Monetary Policy announcement scheduled for the next week. The market sentiment was divided, with some expecting a “Status Quo” decision while others speculated a “100bps hike” in interest rates.
The banking sector remained the preferred choice for investors during the trading session, with MCB, UBL, and MEBL contributing significantly to the index’s gain by adding 116 points. Additionally, COLG and SHEL also made positive contributions, adding 34 points collectively.
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Amid the bullish trend in the stock market, the Pakistani Rupee continued to face depreciation against the US Dollar, losing Rs 1.11 (0.39%) during the interbank trading session. The closing rate was recorded at 287.92. Since July 13, 2023, the local currency has depreciated by Rs 11.46 (3.98%), reaching the highest level post IMF SBA announcement.
The total trading volumes during the session stood at 298.6 million shares, experiencing a 41% decrease compared to the previous trading day. The total value of shares traded amounted to Rs 8.1 billion, down 33% from the previous session. WTL led the volume chart with over 35.8 million shares changing hands.
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The bullish trend in the stock market reflects growing investor confidence and positive economic sentiment in Pakistan. However, market participants will closely monitor the upcoming Monetary Policy announcement to gauge its potential impact on the market’s future direction.
