Bulls took control of the trade floor on Thursday as shares surged by 900 points in intraday trade, with analysts attributing the increase to the clarity surrounding the formation of the new government and the swearing in of MNAs.
The KSE-100 index rose by 873.38 points, or 1.37%, reaching 64,576.82 at 11:43am from the previous close of 63,703.44.
After experiencing losses the previous day, the stock market resumed its upward trajectory on Wednesday, fueled by political clarity and strong corporate results, with investors strategically picking up stocks at attractive levels.
Topline Securities Ltd noted that the equities market remained bullish throughout the session, thanks to further clarity on the new government formation at the Centre.
Awais Ashraf, director of research at Akseer Research, mentioned that the first session of the 16th National Assembly provided clarity on the government’s formation, boosting investors’ optimism for addressing economic concerns as a top priority.
Shahab Farooq, director of research for Next Capital Limited, stated that the market’s positive momentum continued due to the first session of the new National Assembly and upcoming changes in the MSCI frontier market index and MSCI frontier markets small cap index.
Three Pakistani companies were added to the MSCI FM index and 19 companies were added to the MSCI FM small cap index, leading to anticipation of some net inflows due to this adjustment, as anticipated by Topline Securities in their previous note.