Energy companies keep fuelling the stocks as higher returns lure investors
KSE-100 Index has so far made 58.12pc gain during the current calendar year
KARACHI (Web Desk) – The KSE-100 Index was 0.97 per cent, or 621. points, up during early trading on Thursday as investors were not in a mood to stop buying amid attractive returns being offered by energy and related companies.
By 10:59am, the benchmark index had reached 64,538.73 against the previous closing of 63,917.72, which translates into 58.12pc gain during the current calendar year.
The latest gains come just a day after the stock market set new milestones as the KSE-100 Index was up 0.71 per cent, or 447.13 points – a session that the index breaching two ceilings, first smashing the 63,000 points barrier and later briefly crossing the 64,000 mark.
Experts believe that the stock market will not only cross the 65,000 points mark but also move even higher because investors want to take advantage of this momentum and aren’t expected to go for profit-taking.
It is not just the foreign investment pledges and the improvement in macroeconomic indicators which have been propelling the market towards new highs continuously.
The reasons behind a strong performance being shown by the power and gas companies – along with banks and other financial institutions which are benefiting from the high interest rates and a weakened rupee – also include the previous and planned tariff hikes which help dealing with the circular debt issue, albeit at the cost of consumers who are already crushed by the rising cost of living.
Meanwhile, the stocks of major entities, which remained undervalued in recent years, are making huge strides towards achieving the desired level after investors shifted to their focus to them due to a persistent decline in property prices – both residential and commercial – thus making the real estate and construction sectors less profitable.
It’s a developing story. Details to follow.