The Pakistan Stock Exchange (PSX) extended its stellar run for a second day in a row mostly after the country’s major political parties negotiated their way out of a stalemate over ‘who forms the next government’, scoring 926.92 points or 1.51%, cutting post-poll loss to 1,990 points or 3.1%.
The benchmark KSE-100 Shares Index closed at 62,153.84 level, registering a total trading volume of 179.31 million shares, showcasing a market heavily tilted towards the upside.
Arif Habib Limited in a note said the market continued its climb from sub-60,000 levels, adding another 4.26% to Tuesday’s gains.
This surge brings the week-on-week performance to -1.38%. The rally was broad-based, with 83 stocks advancing and only 8 declining.
The PPL, ENGRO, and EFERT were the top gainers, while OGDC, HUBC, and MEBL weighed down the index.
As per news reports, the rally comes amid anticipation of revised gas prices by the Economic Coordination Committee (ECC) today (Wednesday).
Moreover, the International Monetary Fund (IMF) has also urged the government to raise gas tariffs by mid-February.
Notably, HUBC’s second-quarter earnings fell short of market consensus, with Dividend Per Share lower than anticipated. With this upward momentum, the index is strongly likely to test the 63,000-64,000 resistance zone.
Notably, 83 companies experienced gains, while only 8 reported losses. Additionally, 4 companies maintained their position, and 5 remained untreated.
Also read: PTI loses JI’s cooperation on K-P government formation
On Tuesday, former allies such as the Pakistan Muslim League-Nawaz (PML-N) and the Pakistan People’s Party (PPP) agreed to establish a coalition government, also giving an open invitation to the Pakistan Tehreek-e-Insaf (PTI) to become a part of the rapprochement process.
Meanwhile, Moody’s Investors Service has warned that the ride for a coalition government would be extremely bumpy in terms of unity and political strength, causing problems in achieving consensus for needed reforms.
Market players are of the view that despite the political breakthrough, the resulting administration could be highly unstable. The political impasse ended after the PML-N-led alliance nominated former Prime Minister Shehbaz Sharif as Pakistan’s new parliamentary leader, meeting the PPP’s demands.
A day earlier, the market plummeted below the crucial 60,000 level in the first 15 minutes after the opening bell amid the ongoing political uncertainty.
