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

Elections in India
Updated 21 Apr, 2024

Elections in India

Independent accounts and spot reports are at variance with Modi-friendly TV anchors and they do not see an easy victory for the Indian premier.
IHC letter
21 Apr, 2024

IHC letter

THIS is a historic opportunity for the judiciary to define its institutional boundaries. It must not be squandered....
Olympic preparations
21 Apr, 2024

Olympic preparations

THIS past week marked the beginning of the 100-day countdown to the Paris Olympics, with the symbolic torch-lighting...
Isfahan strikes
Updated 20 Apr, 2024

Isfahan strikes

True de-escalation means Israel must start behaving like a normal state, not a rogue nation that threatens the entire region.
President’s speech
20 Apr, 2024

President’s speech

PRESIDENT Asif Ali Zardari seems to have managed to hit all the right notes in his address to the joint sitting of...
Karachi terror
20 Apr, 2024

Karachi terror

IS urban terrorism returning to Karachi? Yesterday’s deplorable suicide bombing attack on a van carrying five...