Stock market gains 474 points on positive economic indicators

Stock market gains 474 points on positive economic indicators

The Pakistani stock market saw a significant surge on Thursday, gaining 474 points after positive comments from the Finance Minister during the disclosure of the Economic Survey of Pakistan for the outgoing fiscal year.

The benchmark KSE-100 index closed at 48,252 points, up from the previous day’s closing of 47,778 points.

Analysts at Arif Habib Limited highlighted the positive performance of the stock market, noting that the session added a total of 510 points at its peak before closing with a robust gain of 474 points.

The trading day at the stock market was characterized by bullish sentiment, with notable performances in key sectors such as banking, fertilizer, cement, and technology.

The Finance Minister’s remarks during the economic survey announcement played a pivotal role in propelling the stock market. Investors responded favorably to the disclosed economic indicators, which painted a promising picture of the country’s fiscal health and future growth prospects.

Trading volumes remained healthy at the stock market, although WorldCall Telecom (WTL) traded roughly half the volume it did the previous day. Leading the volumes table, WTL saw 327.9 million shares traded, followed by K-Electric Limited (KEL) with 48.8 million shares, and Hum Network Limited (HUMNL) with 43.1 million shares.

Sector-wise, technology contributed the most to the index’s performance, adding 155 points, followed by banks with 116 points, fertilizer with 65 points, vanaspati with 36 points, and textile with 33 points. The overall trading volume at the stock market declined from 135.1 million shares to 1,039.4 million shares, representing a 23 percent decrease day-over-day. Despite the volume decline, the average traded value increased by 14 percent, reaching $169 million compared to the previous $148.7 million.

Key stocks that contributed significantly to the trading volumes included WTL, KEL, HUMNL, Unity Foods Limited (UNITY), and Pace Pakistan Limited (PACE), collectively accounting for 48 percent of total volumes.

Stocks that made notable positive contributions to the index included TRG Pakistan Limited (TRG) with 128 points, UNITY with 36 points, Habib Bank Limited (HBL) with 32 points, United Bank Limited (UBL) with 25 points, and Systems Limited (SYS) with 24 points. Conversely, stocks that had a negative impact on the index included Hub Power Company Limited (HUBC) with -13 points, Pakistan Petroleum Limited (PPL) with -13 points, Indus Motor Company Limited (INDU) with -9 points, International Industries Limited (INIL) with -8 points, and Dawood Hercules Corporation Limited (DAWH) with -7 points.

The overall bullish trend in the market, driven by the Finance Minister’s optimistic economic outlook, suggests a positive investor sentiment and confidence in the country’s economic trajectory. This surge in the stock market is indicative of the underlying strength and potential for growth in various sectors of the economy. As the fiscal year comes to a close, the disclosed economic indicators and the stock market’s response provide a promising outlook for the coming months.