PTBP Web Desk
The KSE-100 Index at the Pakistan Stock Exchange (PSX) rose by over 1,000 points on Friday, driven by positive sector performance and political developments.
The Pakistan Stock Exchange (PSX) experienced a notable upturn on Friday, with the benchmark KSE-100 Index gaining significant ground. By 2:50pm, the index was recorded at 114,860.01, marking an increase of 1,023.27 points or 0.9%. This surge was particularly fueled by robust buying in key sectors including automobile assemblers, cement, fertilizer, oil and gas exploration companies, oil marketing companies (OMCs), power generation, and refineries.
Several index-heavy stocks such as NRL, PRL, HUBCO, PSO, SNGP, SSGC, MARI, OGDC, ENGRO, HBL, and UBL all saw their stocks trading in the green, contributing to the overall positive market sentiment.
The market’s optimism can partly be attributed to the recent political developments in Pakistan. On this day, former Prime Minister Imran Khan and his wife, Bushra Bibi, were convicted in the £190 million Al-Qadir Trust case, receiving sentences of 14 years and 7 years respectively. This conviction might have provided some clarity to investors who were previously concerned about the political uncertainty surrounding Khan’s potential release from jail. Intermarket Securities commented on these events, stating, “We think the market was concerned about the potential release of Imran Khan from jail, which led to political uncertainty.” They further noted that conversions at mutual funds had slowed down, predicting a range-bound market unless new triggers emerge.
Contrastingly, the previous day, Thursday, saw a different market mood. After fluctuating throughout the trading session, the KSE-100 Index ended the day on a negative note, declining by 658.96 points or 0.58%, settling at 113,836.74 points. Investors had opted to offload their holdings on available margins, reflecting a cautious approach amidst the prevailing uncertainties.
Globally, the market dynamics were less favorable as Asian shares followed the overnight losses on Wall Street. Bond yields dipped amid growing expectations of a Federal Reserve interest rate cut in June. Japan’s Nikkei was notably down, heading towards its worst weekly performance in three months, pressured by a stronger yen due to anticipations of a Bank of Japan rate hike in the upcoming week.
China provided a contrasting narrative with its economy showing a stronger than expected expansion of 5.4% in the fourth quarter year-on-year. This performance placed the full-year 2024 growth at 5%, aligning well with Beijing’s targets, offering some support to Chinese stocks. Mainland Chinese blue chips rose by 0.3%, and Hong Kong’s Hang Seng Index added 0.14%. The Chinese yuan also saw a slight appreciation to 7.34 per dollar in offshore trading. Despite these positive developments, MSCI’s world index and its broadest index of Asia-Pacific shares edged down by 0.05% and 0.4% respectively, indicating a cautious global investment climate.
For investors looking at the Pakistan Stock Exchange, this day’s performance could be seen as a brief respite after recent volatility. The positive movement in the KSE-100 Index, driven by specific sector gains and political clarity, might suggest cautious optimism. However, with global markets showing signs of weakness and the local political landscape still evolving, it remains essential for investors to remain vigilant and perhaps adopt a wait-and-see approach for more definitive market signals.
