Karachi, March 27, 2024 – Pakistan stocks witnessed a significant uptick on Wednesday, closing 642 points higher as foreign interest surged, signaling renewed confidence in the country’s equities.
The benchmark KSE-100 Index of the Pakistan Stock Exchange (PSX) concluded the trading session at 66,548 points, marking a notable increase from the previous day’s closing figure of 65,906 points.
Analysts at Topline Securities Limited noted that the breakthrough of the 66,000-point level on a closing basis demonstrated the resilience of Pakistan equities, with the index closing at 66,548 points, reflecting a gain of 642 points or 0.97 percent.
The surge in the stock market was largely attributed to several factors, including positive developments related to the International Monetary Fund (IMF), heightened foreign interest, and progress on the privatization of State-Owned Enterprises (SOEs). These factors collectively contributed to boosting investor sentiment and attracting fresh capital into the market.
Investors, buoyed by the positive signals from international institutions like the IMF, showed increased appetite for Pakistani equities, particularly at historically low valuations. The influx of foreign investment, coupled with domestic investor confidence, resulted in a bullish trend across the board.
The Power, Banking, and Fertilizer sectors emerged as key contributors to the index’s upward trajectory. Stocks such as HUBC, MEBL, UBL, MCB, and ENGRO collectively added 319 points to the index, underscoring investor interest in blue-chip companies.
However, some profit-taking was observed in select stocks, including PPL, NBP, and MTL, which collectively shed 67 points. Nonetheless, the overall market sentiment remained positive, driven by the influx of foreign investment and robust trading activity.
Trading volumes remained robust, with over 354.5 million shares changing hands during the session. The total value of shares traded amounted to Rs11.9 billion, reflecting the heightened activity and investor participation in the market.
LOTCHEM emerged as the most actively traded stock, with over 42.8 million shares traded, indicating significant investor interest in the chemicals sector.
The surge in the Pakistan stock market underscores growing confidence in the country’s economic prospects and investment opportunities. The influx of foreign investment, combined with positive domestic developments, bodes well for sustained growth and stability in the equity market.
Market analysts remain optimistic about the future trajectory of the stock market, anticipating continued investor interest and positive momentum in the coming sessions. The surge in foreign interest reaffirms Pakistan’s attractiveness as an investment destination and highlights the resilience of its capital markets amidst global uncertainties.
