KARACHI:
The Pakistan Stock Exchange (PSX) broke back-to-back records over the past week as investors pushed the KSE-100 above the psychological barrier of 70,000 on reports of Saudi Arabia’s willingness to invest billion dollars and the upcoming talks with the International Monetary Fund. IMF) for a larger loan program.
Although the market remained open for only two days during the week due to Eidul Fitr holidays, the index added nearly 1,900 points to its tally.
A significant increase in remittances sent abroad by overseas Pakistanis and a stable rupee against the US dollar also fueled positive market momentum.
On Monday, the stock market soared to a record high above 69,000 points, just a day before the Eid holiday, as investors banked on the prime minister’s visit to Saudi Arabia and talk of a $1 billion Saudi investment in the copper and gold mining project. Reko Diq.
The next day, the stock hit another milestone as it breached the 70,000 mark to hit a fresh all-time high on favorable remittances data which rose 16.4% year-on-year (y-o-y) in 2 .95 billion dollars in March 2024 .
Overall, the benchmark KSE-100 rose 1,898 points, or 2.77% week-on-week (WoW), to close at 70,315.
Topline Securities, in its report, noted that the KSE-100 index gained 2.77% WoW during the shortened week ahead of the Eid holiday as the Prime Minister’s visit to Saudi Arabia along with a delegation gathered investor interest for the purchase.
Riyadh’s commitment to speed up the implementation of a $5 billion investment plan provided further impetus to the market.
The finance minister’s upcoming trip to Washington on April 13 to attend the World Bank and IMF spring meetings and discuss a new loan program also gave investors confidence.
During the week, remittances for March reached $2.95 billion, up 31% month-on-month and 16% year-on-year, the highest in 22 months.
On the PSX, the average daily trading volume and value during the week under review was 362 million shares and Rs 16.27 billion, respectively, Topline added.
Arif Habib Limited (AHL), in its commentary, wrote that the stock market maintained its upward trajectory during the two-day working week, forming an all-time high above 70,000 points.
The positive sentiment stemmed from an agreement between Pakistan and Saudi Arabia to expedite the implementation of Saudi Arabia’s planned $5 billion investment package during Prime Minister Shehbaz Sharif’s visit to the kingdom.
In addition, Pakistan’s government’s $1 billion in international capital market bonds are set to mature on April 15, 2024. In addition, remittances rose 16% year-on-year to about $3 billion in March 2024, the highest inflows since April of 2022, the AHL said.
Additionally, during the week, the Pakistan Rupee remained unchanged at 277.94 against the US Dollar.
Sectorally, positive contributors to the stock market were commercial banks (563 points), fertilizers (344 points), research and production (250 points), electricity (179 points) and oil trading companies (106 points).
Meanwhile, the main negative contributors were auto parts (four units) and insurance (three units).
On the stock front, positive contributors were Fauji Fertilizer Company (352 points), Hub Power (176 points), Meezan Bank (172 points), UBL (113 points) and MCB Bank (89 points).
Foreign investor buying continued in the outgoing week, with $4.2 million worth of shares compared to a net purchase of $3.9 million the previous week.
Published in The Express Tribune, April 13u2024.
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