Stock Market jumps over 1,700 points; analysts expect stability

KARACHI: Pakistan Stock Exchange (PSX) begins the new year with a sentiment of positivity after the stock market embarked on the road to recovery on Friday.

On the New Year’s day, the stock market opened at 62,451.04 points and posted 400 points gains early in the morning after severe market correction in the outgoing week and the week before.

Stock Market welcomes new year with positive sentiment

By noon the benchmark KSE-100 index had shot past 1,800 points growth, reaching 64,275.87 points before slightly lowering to 64,186.46 points at 12 PM.

After continuous fluctuations, the improvement in the stock market is a welcome sign for traders and investors. Analysts believe that the market is receiving substantial backing from notable institutional buying for the past couple of trading days, contributing to the optimistic investor sentiment.

Speaking to Dawn News, Intermarket Securities’ head of equities Raza Jafri said energy stocks opened at a high today with authorities looking serious on addressing circular debt, enabling the KSE-100 to commence 2024 on a positive note.

This also explains the energy sector appearing to be the primary driver of today’s hike. The continued recovery of the Pakistani rupee and a decline in government bond yields further supported the upward momentum.

Weekly wrap-up: Stock Market finally on the road to recovery

According to market experts, today’s growth is not a ballooning impact, rather it is growth after market correction has taken place so this growth is likely to continue.