The stock market witnessed a significant surge on Wednesday, with the benchmark KSE-100 index gaining 593 points, closing at 45,450 points compared to the previous day’s close of 44,857 points.
This uptick in the market was attributed to the opposition’s decision to postpone its plan for countrywide demonstrations.
Analysts at Arif Habib Limited noted that the market displayed positive momentum following clarity on the political front, as the Pakistan Democratic Movement (PDM), an alliance of opposition parties, decided to defer its plans for nationwide protests. This development boosted investor confidence, leading to increased activity across various sectors, particularly in technology, banking, cement, oil and gas marketing companies (O&GMCs), and exploration and production (E&P) sectors.
Furthermore, the appreciation of the Pakistani rupee against other currencies also contributed to the upbeat sentiment. Additionally, news regarding the government’s engagement with banks to launch international bonds for external financing added to the positive market sentiment.
In terms of trading volumes, TRG Pakistan emerged as the top performer with 34.4 million shares traded, followed by BYCO with 31.6 million shares and PRL with 26.7 million shares. Key sectors that contributed to the market’s performance included Banks (+175 points), Tech (+94 points), Cement (+59 points), E&P (+50 points), and Fertilizer (+40 points).
Overall trading activity saw a notable increase, with volumes rising from 408.4 million shares to 510.4 million shares, marking a 25 percent increase day-on-day (DoD). Similarly, the average traded value also rose by 25 percent to reach US$160 million, compared to US$128.3 million in the previous session.
Noteworthy stocks that significantly contributed to trading volumes included TRG, BYCO, PRL, HUMNL, and UNITY, collectively forming 28 percent of the total volumes. In terms of index performance, TRG emerged as the top contributor with an increase of 100 points, followed by UBL (+59 points), HBL (+45 points), PPL (+24 points), and MCB (+23 points).
However, some stocks witnessed negative contributions to the index, including SYS (-7 points), AICL (-5 points), KAPCO (-5 points), PMPK (-5 points), and HUBC (-4 points).
Overall, the Karachi Stock Exchange’s robust performance reflects renewed investor confidence amid favorable political developments and positive economic indicators. The decision to defer nationwide demonstrations by the opposition has provided a conducive environment for market stability and growth, signaling optimism among investors regarding Pakistan’s economic outlook.
