The stock market recorded a significant rise on Thursday, with the benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) gaining 789 points. The index closed at 41,071 points, up from 40,282 points, fueled by gains in international oil prices and strong performance in regional stock markets.
Analysts at Arif Habib Limited attributed this upward momentum to growing optimism in global markets. The anticipation of U.S. President Joe Biden’s victory, though not officially declared, brought stability and relief to investor sentiment worldwide. Consequently, international crude oil prices stabilized at levels not seen in recent sessions, positively influencing stock market trends.
Regional stock markets also performed robustly, trading on average 2.5% higher. This positive sentiment trickled down to Pakistan’s local stock market, which maintained a bullish trajectory throughout the day. The KSE-100 index gained as much as 803 points during intraday trading before closing with a net increase of 789 points.
The stock market saw notable buying activity across various sectors, with the exploration and production (E&P) and oil and gas marketing companies (O&GMCs) sectors making the most substantial contributions to the index. Among individual stocks, Pakistan Refinery Limited (PRL) led the trading volume with 33.2 million shares, followed by Unity Foods Limited (UNITY) with 32.2 million shares and Pakistan International Bulk Terminal (PIBTL) with 19.4 million shares.
Sectors driving the index upward included Banks (+242 points), E&P (+155 points), O&GMCs (+59 points), Cement (+56 points), and Power (+48 points). Despite the positive sentiment, total trading volumes fell 17% day-on-day, declining from 427.8 million shares to 356.7 million shares. The average traded value also dropped 16%, reaching $73.4 million compared to $87.2 million in the previous session.
Key contributors to the stock market’s positive performance included Pakistan Petroleum Limited (PPL) with +60 points, MCB Bank Limited (MCB) with +53 points, Oil and Gas Development Company (OGDC) with +51 points, Hub Power Company Limited (HUBC) with +41 points, and Pakistan Oilfields Limited (POL) with +41 points.
This rally, driven by stable oil prices and regional market recovery, underscores the importance of external factors in influencing the stock market’s performance.