The Pakistan Stock Exchange (PSX) made a strong comeback after three consecutive losing sessions, with the KSE-100 Index surging over 1,700 points. Investor confidence returned, driving aggressive buying, particularly in the second half of the session.
Market Rally and Key Performers
The benchmark index soared to an intra-day high of 113,400.57 before closing at 113,206.40, marking a gain of 1,719.04 points or 1.54%. The rally was fueled by strong performances from MARI, BAHL, LUCK, PSO, and HUBC, which collectively contributed 923 points to the index.
Investor sentiment improved as major banks began announcing their annual financial results. Bank Alfalah led the way, reporting a consolidated profit of Rs39.9 billion for 2024, reflecting a 10% increase compared to 2023.
IMF Review and Market Outlook
The upcoming IMF review, scheduled for the end of February, remains a crucial factor in determining macroeconomic stability. Analysts believe that the continuation of economic reforms and IMF support will sustain investor optimism in the market.
Recovery After Three Losing Sessions
On Wednesday, the KSE-100 Index had dropped 543 points, closing at 111,487.36 due to selling pressure and a lack of positive triggers. The market had lost nearly 3,400 points in the previous three sessions. The Thursday rally, however, reversed the downward trend, restoring investor confidence.
Global Market Trends
Internationally, Asian markets showed mixed trends due to Lunar New Year holidays, while the US dollar remained stable after the Federal Reserve decided to keep interest rates unchanged. Fed Chair Jerome Powell signaled that there was no urgency to cut rates in the near future.
On Wall Street, the S&P 500 declined by 0.5%, with tech stocks dragging the index down. Earnings reports from major tech firms showed mixed results. Microsoft exceeded revenue expectations, while Tesla reported weaker profit margins.
Read: Gold and Silver Rates in Pakistan on 30th January
Rupee Slightly Declines Against US Dollar
Meanwhile, the Pakistani rupee depreciated slightly against the US dollar, falling by 0.04% in the interbank market. It closed at 278.97, losing Re0.1 against the greenback, according to the State Bank of Pakistan (SBP).
Trading Volume and Top Stocks
The all-share index volume increased to 483.94 million shares, up from 449.24 million in the previous session. However, the value of traded shares dropped from Rs28.19 billion to Rs26.10 billion.
The top volume leaders included:
- Sui South Gas (48.36 million shares)
- Waves Home Appliances (33.27 million shares)
- Bank Makramah (31.51 million shares)
Of the 441 companies traded, 272 saw gains, 118 recorded losses, and 51 remained unchanged.
Market Momentum and Future Prospects
The strong buying momentum and improving economic outlook indicate continued market recovery. With upcoming financial results and the IMF review, investors will closely watch key developments that could further drive market sentiment.
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