Business

PSX Surges 1,345 Points Amid Robust Earnings and Investment Approval

Investor Optimism Drives Market Rally

The Pakistan Stock Exchange (PSX) witnessed a bullish session on Tuesday, with the KSE-100 index soaring by 1,345 points. The surge was fueled by several positive economic indicators, including World Bank’s $40 billion investment approval, rising global crude oil prices, robust textile exports, and solid earnings in key sectors such as fertiliser, cement, and banking.

Market Performance and Key Highlights

The KSE-100 index experienced fluctuations, reaching an intra-day high of 113,253 points before dipping to 111,642 points. It eventually settled at 113,088 points, marking a 1.2% increase for the day.

Factors Driving the Bullish Momentum

  1. World Bank’s $40 Billion Investment Approval
    • The World Bank’s commitment under the country partnership framework boosted investor confidence.
  2. Crude Oil Prices Surge
    • Rising global crude oil prices fueled optimism in the energy sector.
  3. Strong Textile Exports
    • 15.9% YoY increase in textile exports supported market sentiment.
  4. Robust Earnings in Key Sectors
    • The fertiliser, cement, and banking sectors posted solid earnings, contributing to the market rally.
  5. SBP Policy Easing Expectations
    • Investors speculated on further monetary policy easing amid controlled inflation.

Stock Performance and Market Trends

Top Performing Stocks

Several major stocks contributed significantly to the KSE-100 index’s gain:

  • Lucky Cement (+3.94%)
  • Oil and Gas Development Company (+3.16%)
  • Engro Fertilisers (+2.57%)

These stocks alone added 608 points to the benchmark index.

Declining Stocks

Despite the bullish run, some stocks faced downward pressure:

  • Mehmood Textile Mills (-9.39%)
  • TRG Pakistan (-3.15%)
  • Fatima Fertiliser (-1.18%)

Economic Indicators and Market Outlook

Current Account Surplus and Revenue Goals

Pakistan recorded a Jul-Jan current account surplus of $682 million, compared to a $1.8 billion deficit last year. The finance minister expressed confidence in achieving revenue targets without imposing additional tax burdens.

Trading Volume and Foreign Investment

  • Trading volume rose to 545 million shares, up from 511.2 million shares on Monday.
  • 446 companies were traded, with 255 closing higher, 139 falling, and 52 remaining unchanged.
  • Foreign investors offloaded Rs194.1 million worth of shares, according to the NCCPL.

Most Traded Stocks

  • The Bank of Punjab led with 200.8 million shares traded, gaining Rs1.06 to close at Rs13.23.
  • Power Cement saw 25.8 million shares traded, losing Rs0.05 to close at Rs10.71.
  • WorldCall Telecom traded 21.8 million shares, rising Rs0.03 to close at Rs1.50.

Market Outlook: Bullish Sentiment to Continue?

According to Arif Habib Limited (AHL), the KSE-100 index is poised for further gains, eyeing a move beyond 113,500 points in the coming days. Market analysts anticipate continued investor interest in key sectors, especially with ongoing economic reforms and strong corporate earnings.

Frequently Asked Questions (FAQs)

1. Why did the PSX surge by 1,345 points?

The PSX rallied due to strong earnings, rising crude oil prices, World Bank investment approval, and expectations of monetary policy easing by the State Bank of Pakistan (SBP).

2. Which stocks contributed the most to the rally?

Stocks like Lucky Cement, Oil and Gas Development Company, and Engro Fertilisers played a major role in the KSE-100 index’s surge.

3. How did trading volume change compared to the previous day?

Trading volume rose to 545 million shares, an increase from 511.2 million shares on Monday, indicating higher investor participation.

4. What are the key economic factors influencing PSX performance?

Major economic factors include rising global crude prices, strong textile exports, World Bank’s investment approval, and a current account surplus.

5. Will the PSX continue its bullish trend?

Market analysts expect further gains, supported by strong earnings reports and economic stability.

Leave a Reply

Your email address will not be published. Required fields are marked *