Bullish momentum continues at PSX as KSE-100 reaches another record high
Bulls continued their stampede on Thursday at the Pakistan Stock Exchange (PSX) as shares gained 660 points to close at another record high.
On Wednesday, the KSE-100 index had soared 800 points to a new all-time high closing above 67,5000 amid revival of hopes for a cut in the interest rate following a sharp deceleration in inflation and significant progress on the government’s privatisation agenda.
Today, the benchmark KSE-100 index gained 583.64 points, or 0.86 per cent, at 1:21pm from the previous close of 67,756.03. Finally, the index closed at 68,416.78, up by 660.75 points or 0.98pc from the previous close, at a record high.
Mohammed Sohail, chief executive of Topline Securities, observed aggressive buying in the pharmaceuticals, and exploration and production stocks after “positive news” regarding these sectors.
In a note, the brokerage firm said that earlier this week, the Lahore High Court (LHC) disposed off a case in favour of the pharmaceutical industry, adding that the stay order against the deregulation of the Maximum Retail Price (MRPs) of drugs had been vacated.
“Engro corporation’s decision to sell its energy assets also created some excitement,” he said. According to the brokerage firm, the company was selling its thermal assets in one of the largest deals.
In a notice to the stock exchange, the company informed that Engro Energy Limited (EEL)— a wholly owned subsidiary of Engro — had entered into definitive agreements with Liberty Power Holding Limited.
Sohail also highlighted that overall investor confidence was improving as the government was seen “taking steps to put the economy back in order and to acquire the long-term loan from the International Monetary Fund (IMF)”.
Yousuf M Farooq, head of research at Chase Securities, said, “The market has continued yesterday’s rally on media reports of a potential Saudi investment in the Reko Diq project by purchasing shares of Pakistan’s Oil Exploration companies.”
He also highlighted that cement stocks had undergone some correction after yesterday’s rally while oil stocks were up today.