PSX ends day with gain of nearly 1,100 points

WEB DESK: In a significant upswing, the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index concluded Wednesday’s trading session at 61,559.16, exhibiting a notable surge of 1,094.91 points or 1.81 per cent.

This surge follows a newfound political unity among major parties, paving the way for the formation of a coalition government.

Pakistan Stock Exchange closing – February 21, 2024

The positive market sentiment resonates with the consensus reached yesterday by key political players, marking a potential turning point in the country’s political landscape. Investors responded favorably to the prospect of a stable coalition government, reflecting their confidence in the economic outlook.

However, the incoming government faces a daunting task ahead, as it grapples with the necessity of securing a larger and extended International Monetary Fund (IMF) loan program.

This move is imperative to address the country’s substantial debt obligations, providing a critical challenge for policymakers.

Remarkably, the post-election losses have now been significantly reduced to 2,585 points or 4 per cent, underscoring the resilience of the market in the face of political developments.

The KSE-100 index remained positive throughout the trading day, reaching an intraday high of 61,620.86 (+1,156.61) and a low of 60,906.98 (+442.74) points.

Trading activity was robust, with the total volume of the KSE-100 index recording 210.578 million shares. Among the 100 index companies, 76 observed an upward trend, 16 registered a decline, while 8 remained untraded.

The surge in the KSE-100 index was propelled by strong performances in various sectors, notably Oil & Gas Exploration Companies (189.42 points), Commercial Banks (188.19 points), Cement (159.58 points), Technology & Communication (108.29 points), and Pharmaceuticals (101.68 points).

Pharmaceutical stocks, in particular, continued their upward trajectory, with all companies in the KSE-100 index hitting their upper circuit for the second consecutive session. This surge follows the government’s recent relaxation of drug pricing policies, further boosting investor confidence in the sector.

Conversely, Textile Composite (-20.41 points), Miscellaneous (-14.63 points), Automobile Parts & Accessories (-10.52 points), and Textile Spinning (-1.13 points) exerted downward pressure on the index.

Key contributors to the index’s upward momentum included OGDC (82.41 points), LUCK (69.22 points), PPL (59.67 points), UBL (57.18 points), and TRG (53.66 points). On the flip side, companies such as PSEL (-29.75 points), ILP (-21.36 points), AKBL (-13.65 points), PKGP (-12.25 points), and THALL (-10.52 points) weighed down the index.

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