Pakistan's bourse crosses 48,000 mark again after yesterday's losses
Business
Oil and gas, cement, fertilizer sectors among top performers
KARACHI (Web Desk) – The Pakistan Stock Exchange surged passed the 48,000-mark again in on Wednesday after suffering huge losses during the previous session on the back strong showing by oil and gas, cement and fertilizer companies.
At 11:45am, the benchmark KSE-100 Index had reached 48,017.40 after gaining 587.58 points, or 1.24 per cent, against the previous closing of 47,429.82.
Earlier on Tuesday, the market shed 956.43 points, or 1.98 per cent, witnessing selling pressure with the investors going for profit-taking after massive rally in recent weeks.
Hence, all sectors – including the best performing oil and gas companies as well as commercial banks and cement manufacturers – witnessed huge selling and remained in red zone.
By the time trading was closed, benchmark KSE-100 Index was recorded at 47,429.82 against the previous closing of 48,386.25.
On August 2, the KSE-100 Index had raced to 48,764.55 – the highest level in recent years – after from the low of 40,152.05 recorded on June 22. The surge continued on the back of the IMF deal and the prospects of a huge foreign investment coming from the Gulf States.
However, the political uncertainty due to the speculations about a possible delay in general elections and the upcoming caretaker setup amid the sentencing and arrest of the PTI chairman also played a role as these developments may affect the economic policies.
But one has to keep this point in mind that some market correction was always on the cards as no market can sustain upward movement for too long. Hence, profit-taking and consolidation of gains was already expected at some point.
However, the announcement of the caretaker prime minister and the outlook of his cabinet will certainly help easing some of the fears related to external factors.
It’s developing story. Details to follow.
