Karachi: Investor confidence in the Pakistan Stock Exchange (PSX) saw a considerable lift during trading on Wednesday, which led to the KSE-100 index concluding with a healthy positive gain. The rally of the market was led by the buying trend of banking, fertilizer, cement and selected large companies.
The KSE-100 index at the end of the market rose by 1,766.97 points or 1.02 per cent to close at 175,285.78. During the trading session, the highest level of the index was 176,701.38 points, and the lowest level of the index was 173,870.27 points. A total of 248.39 million shares of companies that make up the index were traded, meaning that the market was active with investments.
The stocks that contributed positively in the market to a great extent were called the Pullers of the market, and United Bank Limited (UBL), Engro Holdings (ENGROH), National Bank of Pakistan (NBP), Meezan Bank (MEBL) and Habib Bank Limited (HBL) were among the stocks that pushed the index up substantially.
The overall market trend, however, was positive as the weakness in shares of companies limited the downside impact on the index as Bahria Town Holdings (BAHL), TRG Pakistan (TRG), K Electric (KEL), IBL Flour Mills (IBFL) and Ghani Global (GHNI) saw a limit in their declines in shares.
The KMI-30 Index was also up considerably on the same day. The index closed at 246,775.63 points after increasing by 2,407.71 points or about 0.99%. Investors continued to have faith in Sharia-compliant companies, and Engro, Fauji Fertiliser Company, Meezan Bank, and Lucky Cement were some of the strong performers.
Market commentators said increased investor confidence, large purchases by companies and financial optimism and expectations of good corporate performance helped the stock market. As per the above, if the same trend is to be followed, the market can improve on the next sessions as well, but investors should also pay attention to the global economic indicators, interest rates and local economic conditions.
The only thing that has been recommended by analysts is that investors should take a look at the financial condition, risk profile and market fundamentals of the concerned companies before investing, as it is a natural phenomenon to have fluctuations in the stock market.