Karachi, May 6, 2024 – Pakistan stocks on Monday surged by 862 points on optimism fueled by Saudi visit and upcoming talks of International Monetary Fund (IMF).
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) soared by a substantial 862 points, closing the day at a healthy 72,764.24 points compared to Friday’s close of 71,902 points. This represents a noteworthy 1.20% gain.
Market analysts attributed the bullish sentiment at Pakistan stocks to two key factors. Firstly, the recent arrival of a 50-member delegation from Saudi Arabia has sparked optimism about potential investments in Pakistan. The prospect of increased Saudi investment has instilled confidence in the market’s future prospects.
Secondly, the anticipated arrival of an International Monetary Fund (IMF) team later this month to discuss a new program has generated positive anticipation. The potential for renewed IMF engagement is seen as a significant step towards bolstering Pakistan’s economic stability.
Maaz Mulla, a Senior Trader at Topline Securities Limited, highlighted the bullish trend, noting that the KSE-100 index reached an intraday high of 1,158.65 points, reflecting a 1.61% increase.
Several leading companies significantly contributed to the index’s rise. Notably, DAWH, FFC, ENGRO, ILP, and HUBC collectively added a substantial 360 points. This positive performance was offset by a handful of companies, including OGDC, MARI, SYS, IBFL, and NBP, which collectively deducted 68 points from the index.
The cement sector continued its upward momentum observed last week. Companies like FCCL, DGKC, MLCF, and CHCC all closed in positive territory, witnessing gains of 5.06%, 2.93%, 2.17%, and 1.90% respectively.
DAWH’s performance was particularly noteworthy as it closed at the upper circuit limit. This surge is likely linked to its proposed restructuring notice, which is expected to significantly improve its valuation.
Trading activity remained robust throughout the day, with a total turnover exceeding 578 million shares valued at Rs 24.5 billion. PAEL emerged as the volume leader, with over 48 million shares changing hands.
The positive sentiment on the Pakistan stocks reflects growing confidence in the country’s economic outlook. The potential for increased Saudi investment and renewed IMF engagement are seen as key catalysts for further growth and stability in the near future.
