Karachi, July 31, 2023 – The Pakistan stocks experienced a highly bullish session on Monday, with the benchmark KSE-100 index gaining an impressive 958 points.
The positive trend resulted in the index closing at 48,035 points, a significant increase from the last closing of 47,077 points recorded on July 27, 2023.
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Market analysts at Topline Securities attributed the surge to the KSE 100 Index’s 2% rise, closing at 48,035, marking the highest closing figure since August 23, 2021. The market sentiment was largely optimistic as investors responded positively to recent developments in the country.
One of the significant contributing factors to the market’s upbeat atmosphere was the news regarding a major step towards commencing the construction of a $10 billion greenfield refinery project in Baluchistan. Pakistan reached an Engineering, Procurement, and Construction (EPC) agreement with a Chinese company, a crucial requirement set by Saudi Arabia for its $3 billion equity investment in the project, which was jointly developed with Saudi Aramco.
READ MORE: KSE-100 Index Hits 20-Month High to Reach 47,077 Points
Additionally, the establishment of Pakistan’s new Special Investment Facilitation Council (SIFC) had a considerable impact on market confidence. The hybrid civil-military forum has already given its in-principle approval for 28 projects worth billions of dollars, which will be offered to Gulf countries for potential investment. This announcement provided further stimulus to the market and encouraged investor optimism.
The surge in the KSE-100 index was driven by substantial contributions from Exploration & Production (E&P) and banking companies. Notably, companies such as Oil and Gas Development Company Limited (OGDC), Habib Bank Limited (HBL), Pakistan Petroleum Limited (PPL), Meezan Bank Limited (MEBL), and Bank Al-Habib Limited (BAHL) cumulatively contributed a total of 485 points to the index.
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Trading activity during the session remained robust, with a total volume of 491 million shares being traded, amounting to a value of Rs. 17.88 billion. The volume leader for the day was WorldCall Telecom Limited (WTL), with a total of 49 million shares traded.
Market experts are closely observing the developments in the country and the implementation of the approved projects to gauge the sustainability of the positive market sentiment. The success of these initiatives is expected to play a crucial role in boosting investor confidence and further driving growth in the Pakistan stock market.
READ MORE: Pakistan Equities Maintain Upward Trajectory, Add 362 Points
Overall, the bullish session on Monday provided a much-needed boost to investors and stakeholders, indicating that the Pakistan stock market continues to show signs of resilience and potential for growth in the future.
