Karachi, March 4, 2024 – The Pakistan stocks experienced a robust surge on Monday, gaining 646 points as positive sentiments prevailed throughout the day.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 65,952 points, surpassing last Friday’s closing figure of 65,326 points.
Analysts at Topline Securities provided insights into the market dynamics, noting that the KSE-100 index continued its upward momentum from the previous week. The index reached an intraday high of 681.75 points and an intraday low of 206.90 points before settling at 65,951.72, marking a significant gain of 626.04 points.
In a notable political development that likely contributed to the positive sentiment, Shehbaz Sharif was elected as the Prime Minister for the second time by the National Assembly, securing 201 votes. This development is anticipated to have an impact on market perceptions and investor confidence.
Meanwhile, the International Monetary Fund (IMF) has proposed a substantial increase in taxes for both salaried and non-salaried individuals to the Federal Board of Revenue. The IMF also recommends raising the General Sales Tax rate to 18% for various essential items, including unprocessed food, stationery, medicines, and petroleum, oil, and lubricants (POL) products. This proposal adds an additional layer of economic considerations for investors and businesses, potentially influencing market dynamics in the coming days.
Rumors circulating about government efforts to address the gas circular debt had a positive impact on the Exploration and Production (E&P) sector. Oil and Gas Development Company (OGDC) experienced a notable increase of 7.14%, while Pakistan Petroleum Limited (PPL) saw a rise of 5.98%, both closing in the green zone.
The day’s trading activity was characterized by a substantial volume of 472 million shares, with a total value of Rs.12.20 billion. Key players in today’s trading included K-Electric (KEL), Worldcall Telecom (WTL), and K-Electric (KOSM), emerging as the volume leaders with approximately 163 million shares changing hands.
Market observers suggest that the positive sentiments in the stock market are influenced by a combination of political developments, economic proposals, and sector-specific news. While the market has demonstrated resilience, investors are advised to stay vigilant and informed, as global and domestic factors can impact the stock market’s performance.
As the week progresses, market participants will closely monitor developments in political, economic, and corporate spheres to gauge the direction of the stock market. The dynamic nature of the financial landscape underscores the importance of staying abreast of changes and making informed decisions in response to evolving market conditions.
