Karachi, March 1, 2024 – Pakistan stocks witnessed a significant uptrend on Friday as the benchmark KSE-100 index soared by 747 points, closing at an impressive 65,326 points compared to the previous day’s closing of 64,579 points. This surge was primarily attributed to a wave of foreign buying that injected optimism into the market.
Analysts at Topline Securities have identified the continuous inflow of foreign investments from corporates and mutual funds throughout the week as a key driver behind the market’s robust performance. The decline in political noise, coupled with elected representatives taking their oath in the first National Assembly session following the general election, contributed to the positive sentiment.
The appointment of Ayaz Sadiq from the PML-N as the Speaker of the National Assembly, securing majority votes from coalition partners, further boosted investor confidence. This development signaled that the newly-formed government has the necessary support to make tough decisions for the economy’s well-being.
The total traded volume for the day reached an impressive 344 million shares, with a corresponding value of Rs 13.37 billion. KOSM emerged as the volume leader of the day, with 71.4 million shares traded.
On a weekly basis, the KSE-100 Index marked a 4% increase, reflecting the overall optimism among investors as political parties collaborated to form the government. The elected representatives from the National Assembly also took their oath during the inaugural session of the 16th National Assembly.
Key economic indicators released during the outgoing week contributed to the positive market sentiment. The Consumer Price Index (CPI) inflation for February 2024 stood at 23.06% YoY, a notable improvement from 28.34% in January 2024. Additionally, Pakistan’s trade deficit for February 2024 came in at US$1.7 billion, reflecting a 2% YoY decrease and a 13% MoM decrease.
Throughout the week, the average daily traded volume and value stood at 418 million shares and Rs 15.5 billion, respectively. In terms of foreign investment, foreign corporates and mutual funds displayed a bullish stance, net purchasing equities worth $10.83 million and $3.3 million, respectively, as of the close of yesterday’s trading session.
Conversely, companies, insurance, and banks exhibited a net selling trend, with equities worth $3.73 million, $3.56 million, and $3.51 million, respectively, sold as of yesterday’s close.
The positive momentum in the stock market is indicative of the investor community’s confidence in the economic and political landscape. As Pakistan charts its course forward, the collaborative efforts of political parties and the infusion of foreign investments are seen as positive signals for the market’s resilience and growth potential in the coming weeks.
