PSX Extends Gains by 875 Points in National Assembly Session

PSX Extends Gains by 875 Points in National Assembly Session

Karachi, February 29, 2024 – The Pakistan Stock Exchange (PSX) witnessed an extension of gains with an impressive rise of 875 points on Thursday, coinciding with the first session of the National Assembly.

The benchmark KSE-100 index of PSX concluded at 64,578 points, marking a significant increase from the previous day’s closing of 63,703 points.

Nabeel Haroon, a Senior Analyst at Topline Securities Limited, noted the positive session at PSX, highlighting that the index continued its upward trajectory to close at 64,578 levels, representing a gain of 1.37%. The optimism in the market was attributed to the maiden session of the 16th National Assembly, where newly elected representatives took their oath. This event boosted investor confidence as the country moved forward in the democratic process, with the new government set to take charge.

The traded volume and value for the day stood at 424 million shares and Rs. 17 billion, respectively. Significant positive contributions to the index came from EFERT, MTL, PPL, HUBC, UBL, and MEBL, collectively contributing 516 points to the index. KEL emerged as today’s volume leader with 55 million shares.

On a month-on-month (MoM) basis, the KSE 100 Index gained 4.2%. The month started with skepticism among investors who sold their holdings before and after the general election, where no political party managed to secure a clean majority. However, investor confidence was observed later in the month following an agreement between PML-N and PPP to form a coalition government at the federal level. It’s noteworthy that these political parties, under the Pakistan Democratic Movement (PDM) alliance, successfully negotiated a $3 billion, nine-month Standby Arrangement (SBA) with the International Monetary Fund (IMF) at a crucial time when default was imminent in the absence of an IMF program.

Key developments during the month included:

1. Consumer Price Index (CPI) inflation for January 2024 stood at 28.34% year-on-year (YoY), compared to 29.66% in December 2023.

2. Current Account Deficit for January amounted to US$269 million, contrasting with the Current Account Surplus of US$404 million in December 2023.

3. The issuance of another set of gas prices by the Oil and Gas Regulatory Authority (OGRA) in FY24.

The average daily traded volume and value during the month were 349 million shares and Rs. 13.6 billion, respectively.

The positive momentum in the PSX reflects the resilience and adaptability of the market to the changing political landscape and economic conditions. As investors continue to monitor developments, the PSX remains a key indicator of the overall economic sentiment in Pakistan.