Karachi: The Pakistan Stock Exchange (PSX) witnessed a significant improvement in investor confidence on Thursday, resulting in a sharp rally in the KMI-30 index. At the end of the market, the index closed at 242,349.77 points, up 5,137.60 points, while the highest level of the index during the day was 243,013.88 points.
According to reports, the trading day started at 240,051.33 points and this level was also the lowest level of the day. Investors saw heavy buying in the energy, fertilizer, cement and power sectors, which played a major role in pushing the market up.
According to experts, the improvement in recent economic indicators, the relatively stable situation of the rupee and positive expectations of investors on future economic prospects have restored confidence in the market. As a result of this confidence, the KMI-30 index recorded a 2.17 percent increase.
According to reports, Lucky Cement (LUCK) proved to be the biggest “Puller” which added 524.86 points to the index. Apart from this, Fauji Fertilizer Company (FFC) added 413.60 points, HUBCO added 330.55 points, Engro Holdings added 302.41 points and Pakistan Petroleum Limited (PPL) added 277.13 points.
On the other hand, only Sazgar Engineering (SAZEW) contributed negatively, which had a negative impact of 10.76 points on the index. Analysts said that overall investor sentiment in the market remained positive and green was dominant in most sectors.
According to data released by PSX, the index constituent volume recorded 110.71 million shares, which indicates that investor interest in the market is maintained. Since the beginning of the financial year, the KMI-30 index has shown significant performance with a rise of 31.08 percent, however, on a calendar year-to-date basis, the index is still in the negative zone of 2.49 percent.
Financial experts say that if political and economic stability continues, the Pakistan stock market has bright prospects for further improvement. According to them, an increase in foreign investment, progress in the IMF program and a possible reduction in interest rates could prove to be positive factors for the market.
Investors have welcomed the rally and expressed hope that the market will gain further stability in the coming weeks. However, experts have warned that volatility in global markets, rising oil prices and political uncertainty could still pose a threat to the market.
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