After a volatile session at the Pakistan Stock Exchange (PSX), strong corporate results helped stocks stage a final-hour rally, pushing the benchmark KSE-100 beyond 62,000 with an over 400-point gain on Thursday.
During most part of the day, the benchmark index had remained largely range-bound.
However, it picked up traction in the final hour of trading, and at close, the benchmark index settled at 62,393.73, an increase of 414.55 points or 0.67%.
Experts said investor sentiment improved after strong corporate results especially by the index-heavy banking and energy sectors.
Shares of index-heavy energy stocks including OGDC and PPL closed in the green alongside scrips of Bank Alfalah and Soneri Bank, which posted significant profit growth.
At close on Wednesday, the benchmark index retreated amid late selling to close at 61,979.18, an increase of 137.44 points or 0.22%.
Experts said that the market is keenly awaiting the polls, and a rally is expected post-elections.
“The General Elections 2024 are expected to be held on 8th Feb’24, and transition of power to the newly elected government is expected to increase investor confidence in the market,” said Arif Habib Limited (AHL) in a report on Thursday.
“With the ongoing result season, certain scrips are expected to remain in the limelight on the expectation of robust results,” it added.
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Globally, the Asian shares faltered on Thursday after Wall Street took a late spill, while investors stuck to bets for sizable cuts in US interest rates this year even if the kick-off might now be a little later than first hoped.
The Federal Reserve committee’s decision to hold rates at 5.25-5.5% on Wednesday was no surprise, it took a dovish twist by emphasising that rates would not be cut until it had more confidence that inflation was truly beaten.
In a media conference, Fed Chair Jerome Powell flatly stated a cut as early as March seemed unlikely, but also conceded that everyone on the committee was looking to ease this year.
Volume on the all-share index decreased to 270.5 million from 276.4 million a session before.
The value of shares increased to Rs11.62 billion from Rs9.27 billion in the previous session.
K-Electric Ltd was the volume leader with 34 million shares, followed by Soneri Bank Ltd with 28.1 million shares, and Pak Refinery at 26.1 million shares.
Shares of 346 companies were traded on Thursday, of which 166 registered an increase, 154 recorded a fall, while 26 remained unchanged.
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