Pakistan Stock Exchange: Riding the Bullish Wave
Friday marked another exciting day for the Pakistan Stock Exchange (PSX), as the benchmark KSE-100 index surged by an impressive 489.75 points, bringing the current index to a lively 131,176.40. This change reflects a solid 0.37% increase during intra-day trading, and it seems like the good vibes from the previous day—when the index closed at 130,686.65—continued to influence market sentiment.
Throughout the trading session, the index danced between a high of 131,411.40 and a low of 130,716.10, showcasing the usual ebb and flow that keeps investors on their toes. Trading volume also showed promise, reaching 73.6 million shares with a total value of over Rs 7.7 billion, indicating that buying interest is strong across various sectors.
What’s driving this bullish momentum? One key factor is the recent jump in Pakistan’s foreign exchange reserves, which skyrocketed by $5.1 billion to reach $14.5 billion by the end of FY25. This boost, coupled with the government’s decision to cut National Savings Scheme (NSS) rates, has prompted investors to shift focus towards equities, as noted by Ahsan Mehanti, MD of Arif Habib Corp.
The rally was largely led by heavyweight sectors like oil, gas, banking, and power. Among the gainers, Oil and Gas Development Company rose by 2.77%, UBL climbed by 1.32%, and Hub Power saw an increase of 2.26%. However, not all shares fared well; Bank AL Habib, MCB Bank, and Meezan Bank experienced declines, highlighting the mixed nature of the market.
WorldCall Telecom emerged as the volume leader with trading of 49.5 million shares, albeit dropping by Rs 0.02 to close at Rs 1.59. Following closely was Image Pakistan, which rose by Rs 2.87, and The Bank of Punjab, which saw a minor decline.
Foreign investors were more cautious, selling shares worth Rs 909 million, suggesting a need for ongoing vigilance in this constantly evolving marketplace.
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