On Wednesday, PSX Shares traded positively due to political clarity, consequently increasing by over 900 points.
As stated on the PSX website. The main KSE-100 index rose by 1166.11 points, or 1.9 percent. Reaching 62,393.03 at 10:43 am from the previous close of 61,226.92. By the end, it settled at 62,153.84 points, up by 926.92 points or 1.51 percent. The index had seen ups and downs on Tuesday, fluctuating before ending positively, as investors were uncertain about the new government’s formation.
Mohammed Sohail, Topline Securities’ CEO, linked the index’s rise to “news of a coalition government being set up.” Last night, leaders from six major parties — including Aleem Khan, Sadiq Sanjrani, Shehbaz Sharif, Chaudhry Shujaat, Asif Zardari, and Khalid Maqbool Siddiqui — declared their plan to establish a government, nominating Shehbaz as the prime minister candidate.
Shahab Farooq from Next Capital Limited noted that the index began positively as the PML-N and PPP aimed to form a government. However, uncertainty lingered with PTI striving for government formation in the Centre and Punjab. PTI decided to ally with Majlis Wahdat-e-Muslimeen for government formation and with Jamaat-i-Islami in Khyber Pakhtunkhwa for reserved seats.
Farooq cautioned about potential extreme volatility and highlighted economic management challenges for the new government. Faran Rizvi from JS Global advised investors to be cautious, recommending investment in high dividend yielding stocks for stability amid political uncertainty and circular debt issues.
Yousuf M. Farooq, Chase Securities’ research director, mentioned the PSX Shares positive opening due to reduced political uncertainty, with expectations of a PML-N government formation. He noted the upcoming focus on the IMF’s review. OGDC and PPL surged on rumors of a gas price hike, potentially improving cashflows. Farooq anticipated a PML-N led government to boost construction-related stocks as the economy strengthens. Attention now turns to PTI’s actions and IMF negotiations.
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