Shares at PSX rally 480 points over ‘clarity’ on govt formation

Published February 28, 2024
Trading activity at PSX on Wednesday. — Phot via PSX data portal
Trading activity at PSX on Wednesday. — Phot via PSX data portal

Shares at the Pakistan Stock Exchange (PSX) traded in the green on Wednesday as stocks gained nearly 500 points, with analysts attributing the rally to “robust results” of companies and “clarity” on government formation.

The KSE-100 index gained 507.79, or 0.8 per cent, to stand at 63,726.88 at 11:46am from the previous close of 63,219.09. It closed at 63,703.44, up by 484.35 or 0.77pc.

Tahir Abbas, head of research at Arif Habib Limited, attributed the market’s positive momentum to “robust results and dividend announcement by the companies”.

“The profitability and dividends of KSE-100 index companies surged by 64pc YoY (year-on-year) and 40pc YoY respectively during the December ending quarter,” he said.

He further said that the formalisation of the provincial governments and clarity on the federal government also propelled investor confidence.

Shahab Farooq, director of research at Next Capital Limited, attributed the upward trajectory to “diminishing political uncertainty and an upward movement in international bonds of Pakistan”.

Furthermore, he said that the reports of China rolling over $2 billion of debt had also fueled positive sentiments in the stock exchange.

Sana Tawfik, deputy head of research at Arif Habib Limited, observed an upward trajectory in the refinery sector “on the back of refinery policy news”. Additionally, the fertiliser sector also witnessed a spike in anticipation of the price hike, she said.

She said the outlook was overall “positive” as the country progressed towards the formation of a new government — a crucial factor for negotiating a new International Monetary Fund (IMF) programme.

Additionally, she said that reports of the Chinese loan rollover also helped market sentiment.

Opinion

Editorial

Quetta bombing
Updated 10 Nov, 2024

Quetta bombing

THERE appears to be no end to the stream of violent incidents occurring in Balochistan, indicating a clear failure ...
Burdened courts
10 Nov, 2024

Burdened courts

ACCORDING to recent reports, the new chief justice has set about implementing a recently adopted plan for clearing...
Playing in Pakistan
10 Nov, 2024

Playing in Pakistan

MOHSIN Naqvi, Pakistan’s cricket chief, has shown a brave face. Now he has to be unrelenting and put the onus on...
Wake-up call
Updated 09 Nov, 2024

Wake-up call

Pakistan must heed UN's wake-up call and bring its laws and practices in line with its international human rights obligations.
Foreign banks’ exit
09 Nov, 2024

Foreign banks’ exit

WHY are foreign banks leaving Pakistan? In the last couple of decades, we have seen a number of global banking...
Kurram protest
09 Nov, 2024

Kurram protest

FED up with the state’s apathy towards their plight, the people of Kurram tribal district took to the streets on...