Karachi: In a notable development, Pakistan stocks experienced a bullish trend, closing 671 points higher on Friday as the Pakistani Rupee continued its recovery against the US Dollar.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) concluded the day at 42,096 points, marking a substantial gain from the previous day’s closing figure of 41,425 points.
Analysts from Arif Habib Limited attributed the positive momentum to the strengthening of the rupee against the dollar, contributing to a favorable trading environment. The session saw a triumph of bulls, with value buying observed across various sectors, particularly in the first trading session.
Investor confidence received a significant boost during the second session, propelled by optimistic news related to the resumption of the International Monetary Fund (IMF) Program and the further appreciation of the Pakistani rupee against the US dollar. Positive corporate results announcements further fueled investor participation, with particular attention on the refinery and cement sectors.
Key sectors that played a pivotal role in driving the market’s performance included Banks, contributing 181.8 points, Cements with 134.4 points, Automobile Assemblers with 42.8 points, OMCs (Oil Marketing Companies) adding 39.4 points, and the Power sector contributing 37.0 points.
The trading day witnessed a notable increase in volumes, with shares traded rising from 275.4 million to 406.7 million, reflecting a significant uptick of 47.7% day-on-day. The average traded value also surged by 47.2%, reaching US$ 51.9 million, compared to the previous figure of US$ 35.3 million.
Stocks that prominently contributed to the heightened trading volumes included CNERGY, PRL, WTL, TPLP, and PAEL, indicating a diverse range of active players in the market.
The surge in the stock market is indicative of positive sentiment among investors, who are responding to favorable economic indicators such as the strengthening of the local currency and positive developments on the international financial front. The resumption of the IMF Program is seen as a positive catalyst, providing stability and confidence in the market.
Market participants and analysts are optimistic about the ongoing trend, emphasizing the need for continued positive economic developments, structural reforms, and policies that support sustainable growth. The notable rally in the stock market is a testament to the resilience and adaptability of Pakistan’s financial markets amid a dynamic global economic landscape.
