Karachi Stock Market Sustains Uptrend Amid Political Stability

In a session marked by fluctuating trading patterns, the Karachi stock market sustained its previous gains, buoyed by a clearer political scenario on Thursday.

The main KSE 100-share index saw an intraday low, dropping by 98.71 points to 61,460.45 before rebounding to a high of 61,952.10, an overall increase of 392.94 points.

Analysts at Topline Securities Ltd attributed the buying momentum to the consensus reached between political parties PMLN and PPP regarding the formation of a new government, providing insight into the forthcoming coalition framework.

Diverse Contributions to Index Uplift

Leading companies in technology, banking, and the fertilizer sectors such as System Ltd., Meezan Bank Ltd., TRG Pakistan, Engro Fertilizers, and United Bank had a collective positive impact, adding 367 points to the index’s progression.

Ahsan Mehanti from the Arif Habib Corporation suggested that political stability has been a significant factor in improving market sentiment, which in turn positively affected the performance of Pakistan's sovereign dollar bonds and resulted in a secondary decrease in profit rates for savings plans.

Foreign bonds due in 2031 surged by 2.7 cents on the dollar, while the 2026 maturity notes experienced a 2.6 cent rise, based on Tradeweb data.

Mehanti further noted that the Rupee's stability and robust earnings forecasts are also contributing to market optimism.

As a result, the KSE-100 index closed at 61,914.34 points, registering an upward motion of 335.19 points or 0.58% from the previous session.

Trading Volumes and Leading Shares

Although the total number of shares traded saw a 10.45% decrease to 324.83 million, the value of shares traded during the day rose by 11.79% to reach Rs13.96 billion.

Notable transactions were seen in stocks like Pak Elektron, Cnergyico PK Ltd, Pakistan International Bulk Terminal, K-Electric, and TRG Pakistan Ltd, which accounted for a significant volume of the day’s trades.

Companies like Honda Atlas Cars Ltd, Sazgar Engineering Ltd, Mari Petroleum Ltd, Systems Ltd, and Service Industries Ltd saw substantial increases in share prices. Conversely, the most significant declines were noted in the share prices of Indus Motor Company Ltd, Reliance Cotton Spinning Mills Ltd, Mehmood Textile Mills Ltd, Highnoon Laboratories, and Faisal Spinning Mills Ltd.

Ending the session on a positive note, foreign investors were net buyers of shares worth $2.28 million.

Karachi, Stocks, Politics