Bulls return to PSX as KSE-100 closes nearly 500 points higher

After a lacklustre session on Tuesday, positive momentum was witnessed at the Pakistan Stock Exchange (PSX) as the benchmark KSE-100 Index gained nearly 500 points on Wednesday.

The KSE-100 started the session positive and reached an intra-day high of 63,929.58. However, some late-session profit taking trimmed the gains.

At close, the benchmark index settled at 63,703.45, up by 484.35 points or 0.77%.

Experts said the buying spree came on the back of stability on the political front as a coalition government, led by Pakistan Muslim League-Nawaz (PML-N) and Pakistan Peoples’ Party (PPP), is expected to take charge in the centre, with a National Assembly session expected on February 29.

During the year 2023, profitability of the KSE-100 Index grew 51% to over Rs1.5 trillion on a year-on-year basis as banks and exploration and production (E&P) companies led the rise during the calendar year.

The growth in 2023 is much higher than of 9.4% the KSE-100 companies witnessed in 2022.

Globally, China stocks retreated on Wednesday, with some investors booking profit after a recent rally led by policy support, while property woes added to investor concerns after a liquidation petition was filed against developer Country Garden.

The broad Asian stock market also remained tentative ahead of a US inflation reading this week that could influence the timing of the Federal Reserve’s easing cycle.

On Tuesday, the PSX witnessed a volatile session as its benchmark KSE-100 Index closed in the red to settle at 63,219.10, down by 86.83 points or 0.14%.

Meanwhile, the Pakistani rupee strengthened against the US dollar, appreciating 0.06% in the inter-bank market on Wednesday. At close, the local unit settled at 279.12, a loss of Re0.16 against the greenback, as per the State Bank of Pakistan (SBP).

Volume on the all-share index increased to 461.39 million from 409.96 million a session ago.

The value of shares rose to Rs16 billion from Rs14.67 billion in the previous session.

Cnergyico PK was the volume leader with 62.2 million shares, followed by K-Electric Ltd with 45.5 million shares, and Hascol Petrol with 30.5 million shares.

Shares of 355 companies were traded on Wednesday, of which 180 registered an increase, 149 recorded a fall, while 26 remained unchanged.