On Thursday, shares of the Pakistan Stock Exchange (PSX) increased. According to analysts, this was due to a number of factors, including interest in the cement and energy industries.
At 12:53 PM, the benchmark KSE-100 index had risen 371.56 points, or 0.91 percent, to 41,129.76 points.
Energy equities continued to draw attention, according to Raza Jafri, Head of Equity at Intermarket Securities, as the government worked on its plan to address circular debt. He continued by saying that the cement industry was also helping to raise the index due to reports that Afghanistan and the United States would establish a preferential trade agreement, which would lower the cost of Afghan coal.
First National Equities Limited Director Amir Shehzad also said the cement sector was behind the rally, which could sustain if the central bank’s Monetary Policy Committee decided to maintain the interest rate at its Jan 23 meeting.
At 1:02 pm, the shares of Maple Leaf Cement Factory Limited, Fauji Cement Company Limited, DG Khan Cement Company Limited, and Pioneer Cement Limited had all increased in value by Rs. 1, or 5.74 percent.
At the same time, shares of Pakistan Petroleum Limited increased by Rs0.2, or 0.24 percent.
Shehzad added that the market anticipated excellent results from Prime Minister Shehbaz Sharif’s trip to the United Arab Emirates, which she credited for the positive mood today.
Former PSX director Zafar Moti claimed that the KSE-100 had increased for a number of reasons, including yesterday’s statement by Finance Minister Ishaq Dar that the government will not seize the money held by commercial banks. He said that by doing this, the market’s earlier panic had subsided.
In addition, the Punjab Assembly’s vote of confidence in Chaudhry Parvez Elahi reduced political uncertainty, which caused the market to “breathe a sigh of relief.”
“Overall, buying orders have been received from corporates,” he stated, adding that the market would greatly benefit from a reduction in the difference between the USD-PKR exchange rate in the interbank, open, and grey markets.
After Elahi received the vote of confidence, stocks displayed positive activity as political commotion subsided, according to Ahsan Mehanti of Arif Habib Corporation.
He continued, “Speculations in the results season and the expected successful conclusion of PM Shehbaz’s discussions with UAE leadership on promoting trade and investment played a catalytic role in the optimistic activity.