Karachi, October 4, 2023 – Pakistan stocks witnessed a significant upswing on Wednesday, with the benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) gaining 323 points.
Investor sentiment was buoyed by the anticipation of robust profits in the banking sector, driving a surge in blue-chip stocks.
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The KSE-100 index closed at 47,080 points, marking an increase from the previous day’s closing at 46,757 points. This gain amounted to a 0.69 percent increase, reflecting the positive sentiment prevailing in the market.
Analysts at Topline Securities noted that Pakistan’s equities had a favorable trading day, with investors choosing to bolster their positions in the banking sector. This move was driven by expectations of strong financial results in the sector, which are set to be announced next week. Investors saw an opportunity in attractive valuations and decent dividend yields offered by blue-chip banking stocks.
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Several key banking sector stocks contributed significantly to the index’s gain. Notably, HBL (Habib Bank Limited), MCB (Muslim Commercial Bank), UBL (United Bank Limited), EFERT (Engro Fertilizers), and COLG (Colgate-Palmolive Pakistan) collectively added 287 points to the KSE-100 index. However, some other sectors, including SYS (Systems Limited), PPL (Pakistan Petroleum Limited), and ENGRO (Engro Corporation), experienced profit-taking, resulting in a minor loss of 44 points.
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The trading volume at the Pakistan Stock Exchange exceeded 330 million shares on the day, with a total trading value of approximately Rs 7.3 billion. WTL (Worldcall Telecom Limited) led the volumes chart, witnessing a substantial exchange of over 150.5 million shares.
The market’s positive momentum appears to be driven by investor confidence in the banking sector’s upcoming financial performance. As anticipation builds ahead of the earnings season, investors are positioning themselves to benefit from potential gains in the sector.
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