The stock market experienced a surge on Tuesday, gaining 369 points amid positive sentiment following an announcement from an international pharmaceutical company regarding a new COVID-19 vaccine.
The Pakistan Stock Exchange (PSX) saw its benchmark KSE-100 index close at 41,153 points, up from the previous close of 40,784 points, reflecting optimism in the stock market about a possible return to pre-pandemic economic conditions.
The announcement of Pfizer’s COVID-19 vaccine turned global stock markets bullish as investors anticipated a return to normal business activities. This optimism spilled over into the local stock market, boosting investor confidence. The positive news also influenced global oil markets, with crude oil prices soaring by 9 percent on a day-over-day (DoD) basis. Similarly, US stock markets climbed by 5 percent and ultimately closed 2.5 percent higher. Regional stock markets also saw a boost, with indices increasing by an average of 1.5 percent.
Locally, the stock market in Pakistan followed the global trend, although the impact was somewhat moderated compared to international markets. Within the PSX, there was strong buying activity in exploration and production (E&P) stocks, as well as in the banking and oil & gas marketing companies (O&GMC) sectors. However, the fertilizer sector faced pressure and ended lower by the close of trading. The KSE-100 index posted an initial rise of 813 points before settling with a gain of 369 points.
The day’s trading volumes were led by stocks like TRG, which topped the table with 30.9 million shares, followed by PRL with 23.2 million shares and ASC with 21.6 million shares. These stocks were among the highest contributors to overall volume and helped maintain momentum in the stock market. The volumes for the day increased significantly from 276.7 million shares to 356 million shares, marking a 29 percent increase from the previous day, and average traded value also surged by 59 percent to reach $95.4 million from $60 million.
Sectors that contributed most to the stock market’s rise included E&P (+177 points), Banks (+136 points), Textiles (+34 points), Fertilizer (+30 points), and O&GMCs (+24 points). Among individual stocks, UBL, PPL, OGDC, POL, and ENGRO led the positive contributors, adding substantial points to the index. Conversely, stocks like TRG, PAKT, MLCF, FFC, and EFUG ended in the red, slightly offsetting the overall gains in the stock market.
As investor optimism builds, the stock market appears poised for continued positive momentum, especially if vaccine developments progress smoothly and lead to a broader economic recovery.
