KSE-100 gains over 900 points, crosses 48,000 barrier after two years

Published July 31, 2023
A snapshot of trading activity at the Pakistan Stock Exchange on Monday. — Photo via PSX website
A snapshot of trading activity at the Pakistan Stock Exchange on Monday. — Photo via PSX website

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index crossed the 48,000 mark on Monday for the first time in almost two years after gaining more than 900 points.

According to the PSX website, the index had recorded an increase of 1010.93 points at 11:10am, from the previous close of 47,076.99 points. The market eventually closed 957.60 points, or 2.03 per cent, up at 48,034.59 points.

Arif Habib Corporation said the KSE-100 index crossed the 48,000 level after 24 months. The stock market had last achieved this milestone on August 23, 2021, it added.

Aba Ali Habib Securities’ Head of Research Salman Naqvi attributed today’s rally to strong buying in the energy sector.

“We are seeing strong buying in the exploration and production sector because there is pressure from the IMF (International Monetary Fund) on reducing the circular debt and the government is taking measures,” he told Dawn.com.

Naqvi added that net buying in the stock market had also increased after a long time.

“A number of international delegations are coming to Pakistan, including the Chinese vice premier, and agreements on refineries and minerals are expected to be reached.

“Working on the China-Pakistan Economic Corridor (CPEC) has also begun,” Naqvi pointed out.

Meanwhile, Dalal Securities CEO Siddique Dalal said that there was “positive news” in the market regarding the release of Rs400 billion to reduce the circular debt. “This means the oil sector will get money resulting in higher dividends.”

Secondly, he continued, the market was bolstered by the announcement of a collaboration among four Pakistani state-owned enterprises and Saudi Arabia to execute a substantial $10bn refinery project within Pakistan.

However, Dalal said that the monetary policy announcement — which is due today — may create a hurdle in the market’s performance.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Property valuation
Updated 31 Oct, 2024

Property valuation

Market valuation rates will not help boost tax revenues without plugging such loopholes in the system.
Hitting a wall
31 Oct, 2024

Hitting a wall

PAKISTAN still has a long way to go in defeating polio. Despite our decades-long fight against the debilitating...
Kurram violence
31 Oct, 2024

Kurram violence

DESPITE years of intermittent and bloody conflict in Kurram, the state has been unable to bring lasting peace to ...
Court business
Updated 30 Oct, 2024

Court business

The unity and commonality of purpose on display in the full court meeting are what will help the SC endure.
UNRWA ban
30 Oct, 2024

UNRWA ban

NOT content with the war of extermination it is executing against the Palestinian people, Israel now wants to ensure...
Cricket changes
30 Oct, 2024

Cricket changes

WIN or lose, Pakistan cricket seems to be embroiled in a constant state of flux. Just when things seemed to be...