Investor confidence pushes KSE 100 index to close above 40,000

KARACHI: The KSE-100 index on the Pakistan Stock Exchange surged on Wednesday to close at 40,270.52 points.

Yesterday, the bourse crossed the 40,000 level for the first time in the last ten months, before it slightly declined and closed at 39788.12 points.

The upward rise continued today as investor confidence has been restored in the stock market. KSE-100 Index opened at 39,845.12 and witnessed a change of 481.79 (1.21%) to eventually close at 40,270.52 points. The total volume of scripts traded were 239.7 million worth Rs12 billion.

Meanwhile, KSE-30 index closed at 18.399.67 after witnessing an increase of 195.46 (1.07%). The bourse opened at 18.202.20 points. The total volume of scripts was estimated at 128.5 million.

The main increase is been attributed that consumer price index (CPI) for the month of November have risen by 12.67% and are estimated by 12.49% by year end.

The top active performers were Unity Foods (1.40%), Lotte Chemical Pakistan (2.81%), KEL (-1.49%) followed by Fauji Foods (6.57%), Maple Leaf Cement Factory (4.96%), and TRG Pakistan (3.25%).

The top advancers were Popular Islamic Modaraba (25.88%), Yousaf Weaving Mills (21.65%), Dewan Sugar Mills (19.53%), and Capital Assets Leasing Corporation (18.07%).

READ MORE: KSE-100 index declines slightly after crossing 40,000 level

The surge can be attributed to increasing investor confidence in the country as local and foreign buyers flocked to the stock market, said Imran Alvi, Senior Equity Sale Officer, MM Securities Pvt Ltd.

There has been renewed interest in oil sector, pharmaceuticals, and the refinery sector. Attock Petroleum (4.61+) and PSO (8.67+) and Shell Pakistan (6.05+) were the major players of the day.

However, there was pressure on the fertilizer sector as Engro Corp saw a decline, while Engro Fertilizers, Fatima Fertilizers, and Fauji Fertilizers did not see and substantial gains.

Nevertheless, Alvi expressed confidence that rally will continue and the stock market will cross the 45,000 mark. The government is also expected to reduce the interest rate in the next monetary policy which has raised investor optimism, he added.