Oil and gas companies propel KSE-100 Index by over 950 points
Business
Pakistan Stock Exchange witnesses positive activity in tech and communication, banking too
KARACHI (Web Desk) – The Pakistan Stock Exchange gained over 1,000 points as the central bank is set to revise the key policy rate later in the day while the government is expecting huge investment deals with the Gulf States in the coming days besides inking several MoUs and agreements with China on Monday.
By the time trading was closed for the day, the benchmark KSE-100 Index stood at 48,034.59 after surging by 957.60, or 2.03 per cent, against the level of 47,076.99 recorded during last session with the oil and gas sector giving a big boost to the market.
At the same time, commercial banks, and tech and telecommunication companies also performed well as the market opened after a long weekend due to the Ashura holidays.
It means the market has crossed the 48,000 mark for the first time in around two years. It was on August 21, 2021 that the stock exchange was recorded over this level.
KSE100 crossed 48k level after 24 months
— Arif Habib Limited (@ArifHabibLtd) July 31, 2023
KSE-100 index went up by 977 points (48,054 pts, +2.07%, on intraday basis) DoD ; the 48k level crossed after ~24 months (last seen on Aug 23, 2021).
The market gained 6,601 points (+15.9%) since staff level agreement with the IMF for… pic.twitter.com/EowHmLVA2L
These positive market sentiments can be traced back to a statement given by Minister of State of Petroleum Musadik Malik who told a private TV channel a day earlier that Saudi Arabia and the United Arab Emirates had hinted at a huge investment in Pakistan – $24 billion and $22bn respectively.
Earlier, Pakistan had signed a memorandum of understanding (MoU) with the Saudi giant Aramco to build a $10bn oil refinery in the country. But the imminent dollar inflow won’t be limited to just the fossil fuels as the state minister in his latest interview also mentioned that the sectors for foreign ventures had been chosen in consultation with the top Gulf States, also including Qatar.
However, the upcoming monetary policy tweak may affect the bullish market with the State Bank of Pakistan expected to further increase the interest rate which is already at its highest level in the country’s history.
But there is a silver lining: the market can absorb the change given that it has been anticipated mainly due to the conditions set by the IMF [International Monetary Fund] for the latest bailout package. Hence, the consistency in economic policies amid the much-awaited foreign direct investment can end the uncertainty gripping Pakistan for more than a year.
On Monday, the benchmark KSE-100 Index witnessed a total volume of 314.44 million (314,442,179) shares with a total of 97 companies offering their shares for trading. The share prices of 80 companies were up and 16 downed while one remained unchanged.
K-Electric led the list of volume leaders 39,439,916 with the trading of 39,439,916 shares followed by CNERGY 32,345,655, Pakistan Petroleum 24,098,939, Oil and Gas Development Company 22,458,861 and Pakistan Telecommunication Company 19,492,000.
When it comes to the advancers, the share price of HBL Growth Fund was up by 9.52pc. Oil and Gas Development Company, Pakistan Aluminium Beverage Cans, Pakistan Petroleum and Pakistan Telecommunication Company were the other top performers with a gain of 7.51pc, 7.49pc, 7.25pc and 6.89pc respectively.
Meanwhile, the share price of Abbot Laboratories was down by 3.60pc, Pakistan Services Limited 3.33pc, Pakistan Tobacco Company 2.63pc, Fauji Fertilizer Bin Qasim 2pc and Pak Gul Leasing 1.87pc.
