Stock market has remained buoyant on reform package and made notable gain of 231 points to reach 40,289 points.
The Pakistan Stock Exchange (PSX) witnessed a surge in investor confidence on Thursday, propelled by the positive outlook following the Finance Supplementary Second Amendment Bill, 2019. The benchmark KSE-100 index closed at 40,289 points, reflecting a notable increase of 231 points from the previous closing at 40,058 points.
Market analysts at Arif Habib Limited reported that the day commenced with a significant uptick, as the market opened with an impressive addition of 535 points. The opening bell saw the trading of 9 million shares, driven by the positive sentiment generated by the recently announced mini-budget.
Various measures introduced by the government, as outlined in the mini-budget, were well-received by the market, particularly benefiting listed entities. However, the day also witnessed robust selling pressure, starting from the Fertilizer Sector and extending to Oil Marketing Companies (OMCs), Chemical, and Cable sectors.
Despite the positive momentum, some apparent beneficiaries of the mini-budget faced challenges. Both Pakistan Telecommunication Company Limited (PAEL) and Security Papers Limited (STCL), which were expected to gain specific benefits, experienced downward trends throughout the session after an initial surge.
Pakistan International Bulk Terminal Limited (PIBTL) led the volume table, reaching its upper circuit with a total trading volume of 30 million shares. It was followed by Bank of Punjab (BOP), which lagged behind in terms of price performance. On the flip side, International Steels Limited (ISL) faced heavy selling pressure towards the end of the session, leading to a hit on the lower circuit.
Key sectors contributing to the overall market performance included Banks (+130 points), Cement (+50 points), Exploration & Production (E&P) (+33 points), Miscellaneous (+27 points), Transport (+19 points), and Engineering (-19 points).
Market volumes saw a significant increase from 178.9 million shares to 245.9 million shares, indicating a robust 37 percent day-on-day growth. Similarly, the average traded value also experienced a substantial uptick, rising by 34 percent day-on-day to reach $70.9 million, compared to the previous day’s figure of $52.8 million.
Prominent stocks that significantly contributed to the trading volumes included PIBTL, BOP, PAEL, PIAA, and NRSL, collectively forming 42 percent of the total traded volumes.
The overall positive market sentiment suggests that investors are responding favorably to the government’s economic measures, as outlined in the Finance Supplementary Second Amendment Bill, 2019. The surge in trading volumes and increased average traded value indicate a heightened level of investor participation and interest in the market.
As the market navigates the dynamics of the ongoing fiscal changes and responds to evolving economic conditions, investors will be closely monitoring developments, seeking opportunities, and assessing the potential impact on various sectors. The positive trajectory observed in the Karachi stock market serves as a barometer of the current economic climate, reflecting optimism among market participants.
