Karachi, July 10, 2023 – The Pakistan stock market witnessed a notable surge on Monday, as the benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) gained 378 points. The index closed at 44,585 points, surpassing the previous closing of 44,207 points on Friday.
Market analysts from Arif Habib Limited attributed the increase to the strong performance of refineries, which continued to lead the KSE-100 index and remained the standout sector for the month of July. Notable performers in the refinery sector included NRL (up 38.45%), ATRL (up 24.40%), and PRL (up 19.91%).
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Another interesting observation over the past few weeks has been the recovery of the underperforming Auto sector. Stocks such as HCAR, PSMC, and GHNI initially traded below their respective COVID lows but have now surged back above those levels. This upward movement strongly indicates that even the weakest sector of the PSX has reached a significant bottom. Today, stocks in GHNI, HCAR, PSMC, and SAZEW all hit their limit of up 7.5%.
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Both the KSE-100 index (up 0.68%) and the KSE-30 index (up 0.31%) surpassed the previous high reached on July 4th, while the KSE ALL index lagged behind. This supports the view that larger-cap stocks are currently performing better and are attracting investors’ attention.
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Market experts suggest that corrections should be viewed as buying opportunities, and adopting a passive strategy of equally allocating investments into the top 5 weighted KSE-100 stocks for the remainder of the calendar year could yield significant returns.
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Investors are optimistic about the overall market performance, and with the recent gains, the Pakistan stock market continues to demonstrate resilience and potential for growth.
