PSX shows bullish momentum as KSE-100 gains 1.34%

Political clarity on national stage improves investor confidence 

The Pakistan Stock Exchange (PSX) maintained its positive momentum on Monday, with the benchmark KSE-100 index increasing by 844.42 points, or 1.34%, to currently trade at the 63,660.23 level. 

As of 12:30 PM, according to data available on the PSX website, the benchmark index has shown an upward trend, featuring negligible fluctuations during intraday trading. 

The week begins with better political clarity, as Punjab and Sindh are set to elect their Chief Ministers today.

In other notable developments, last week’s auction of treasury bills witnessed a 126 basis point increase in yields for three-month papers.

This suggests that the market anticipates the monetary policy will remain unchanged in the upcoming March 2024 meeting. 

Additionally, there is a rise in the power sector’s circular debt, submissions of tax proposals for the forthcoming budget, a 39% surge in IT exports in January, and a 21% decline in foreign direct investment from July to January on a year-over-year basis. 

Banks, which constitute a significant portion of the PSX, have recently performed well in terms of earnings growth.

“Banks constitute 19% of the total market capitalization of the Pakistan Stock Exchange (PSX). Over the past few years, the earnings of banks in Pakistan have been remarkable. The profits of the top 10 banks have seen an annual increase of 31% over the last five years. In 2023 alone, these banks recorded an impressive earnings growth of 86%”, said Topline Securities.

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