Bullish sentiments swept the trading floor on Thursday as the stock market surged by 800 points in intraday trade, a development attributed to the “clarity on the formation of the new government” and the swearing-in of MNAs.
The KSE-100 index surged by 873.38 points, or 1.37 percent, reaching 64,576.82 at 11:43 am, up from the previous close of 63,703.44 points.
After experiencing losses overnight, the stock market resumed its upward trend on Wednesday, driven by political clarity and robust corporate results. Investors seized the opportunity to cherry-pick stocks at attractive levels.
Topline Securities Ltd reported that equities remained bullish throughout the session, largely due to the increased clarity regarding the formation of the new government at the Centre.
Mohammed Sohail, Chief Executive of Topline Securities, credited today’s rally to “foreign buying” combined with the “smooth transfer of power and formation of [new] government,” which boosted market sentiment.
Awais Ashraf, Director of Research at Akseer Research, echoed these sentiments, noting that today’s inaugural session of the 16th National Assembly, where newly elected representatives were sworn in, provided clarity on the new government’s formation.
Additionally, Ashraf stated that investors’ optimism was bolstered by the “anticipation of addressing economic concerns as a top priority.”
Shahab Farooq, Director of Research for Next Capital Limited, remarked that the market sustained its positive momentum due to “the first session of the new National Assembly scheduled today.”
Farooq also mentioned that positive sentiments were fueled by changes in the Morgan Stanley Capital International (MSCI) Frontier Market Index and MSCI Frontier Markets Small Cap Index, set to be effective from the following day.
He highlighted that three Pakistani companies were added to the MSCI FM index and 19 companies were included in the MSCI FM small cap index.
Farooq emphasized the critical role of MSCI in providing tools and services for global investors, including equity market indexes based on regions, countries, market sizes, liquidity, and more.
Topline Securities had previously anticipated “some net flows” due to these adjustments, as mentioned in a note issued in November.
