The Pakistan Stock Exchange (PSX) continued its positive momentum on Friday, with the benchmark KSE-100 Index climbing by more than 1,000 points during the latter half of the trading session. As of 3:30 PM, the index stood at 161,681.31, up by 1,023.82 points or 0.64%. This marked another strong day of gains, following a trend of growing investor confidence and sector-specific buying interest.
Key sectors played a major role in driving the market rally, with notable buying activity observed in automobile assemblers, commercial banks, fertilizer companies, oil and gas exploration firms, oil marketing companies (OMCs), power generation, and refinery stocks. Several index-heavy stocks, including prominent names like Oil & Gas Development Company (OGDC), Pakistan Oilfields Limited (POL), Pakistan Petroleum Limited (PPL), Pakistan State Oil (PSO), WAPDA (WAFI), Habib Bank Limited (HBL), and MCB Bank, saw strong trading activity and contributed significantly to the upward movement of the KSE-100.
Investor sentiment remained bullish due to a variety of factors. One of the main catalysts was renewed optimism surrounding developments in mergers and acquisitions, particularly within the cement sector, which buoyed confidence in the broader market. On Thursday, the KSE-100 Index closed with an impressive gain of 2,473.55 points, or 1.56%, finishing at 160,657.50. This gain was further attributed to positive investor sentiment linked to corporate strategies and market consolidation efforts.
On the corporate front, a notable development occurred at K-Electric, where tensions within its Board of Directors led to the postponement of an important meeting. According to well-placed sources, a faction of the board walked out after the first agenda item was approved, creating uncertainty about future leadership decisions. The primary issue at hand was the potential removal of CEO Syed Moonis Abdullah Alvi, which has caused friction with the Al-Jomaih Group of Saudi Arabia. This group, a significant stakeholder in K-Electric, has already sent a legal notice worth $2 billion to the Pakistani government, further intensifying the corporate drama surrounding the utility company.
Despite the challenges in Pakistan’s corporate landscape, the stock market remained resilient, continuing to defy global trends. Internationally, Asian markets experienced a sharp selloff, as hawkish comments from Federal Reserve officials dampened expectations of a rate cut in the US next month. Japan’s Nikkei index dropped by 1.8%, while Australia’s resource-heavy stocks slid 1.5%, and South Korea’s KOSPI plunged by 2.3%. This global downturn, which also impacted bonds and gold, further highlighted the contrast between the performance of the PSX and global stock market movements.
The global market weakness came on the back of concerns over the Federal Reserve’s tightening monetary policy, which has led investors to scale back expectations of future rate cuts. Additionally, data from China regarding weak lending and household debt raised concerns about the stability of the global economy, further affecting sentiment in global markets.
Despite these international headwinds, Pakistan’s stock market demonstrated remarkable resilience, driven by positive domestic factors and sector-specific growth. Investors appear to remain optimistic about the country’s economic potential, especially in sectors like energy, banking, and industrials, where there is significant potential for growth and returns.
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