Market daily: PSX welcomes political calm, ends green twice in row

The benchmark jumps up by 415pts to end at 46,950pts

LAHORE

Investors returned to the Pakistan Stock Exchange (PSX) as certainty returned at the prime minster house. Law makers of the country elected Shahid Khaqan Abbasi as the new prime minister of the country on Tuesday and the investors’ confidence got a boost.

They brushed aside concerns of international agencies like Moody’s. Moody’s recently raised doubt over future of the country and if the economic policies shall roll out as plan or not.

The KSE 100 index appreciated 455.84 points intraday to reach 46,989.27, slightly short of 47,000 levels. Contributing 42 per cent to the total volumes for the day, the index landed with appreciation of 415.61 points at 46,949.04.

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The KMI 30 index jumped another 444.66 points while the KSE All Share Index added 232.64 points. The advancer to decliner’s ratio stood at 262 to 108.

The market volumes ballooned up to one of the highs of the year. A total of 367.71 million shares were exchanged during the session with engineering sector clinching top volumes of 46.99 million. K-Electric Limited (KEL +3.43 per cent) was top pick of investors and recorded volume of 29.46 million.

The engineering sector topped up its market capitalisation with 2.62 per cent. Ittefaq Iron Industries Limited (ITTEFAQ +4.99 per cent) closed the day at its upper circuit breaker. The script has accumulated over 15 per cent since listing on the exchange. It was another upper cap for Aisha Steel Mills Limited (ASL +4.98 per cent).

Bulls have finally returned to the Pakistan Stock Exchange as political certainty has returned to the country.

Although the opposition – under the current role of challenging the treasury benches – is having a ball, the PSX remains positive, amid hopes of political stability. The political turmoil in the wake of Panama Papers investigation as taken up by the Supereme Court of Pakistan badly dented the stock market where the bears began to take over.

However, after the disqualification of Sharif and the following election of a new prime minister, it seems like things are getting back to normal at the bourse.

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Ghulam Noor Jehanian
Ghulam Noor Jehanian
The writer is business sub-editor at Pakistan Today
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