Driven by political stability, the Pakistan Stock Exchange (PSX) began the week positively, with the market gaining more than 700 points during intra-day trading on Monday.
In recent days, there had been significant discussion surrounding a constitutional amendment that the government was attempting to introduce. However, after burning the midnight oil in the wee hours of Monday, the ruling party successfully passed the contentious legislation.
By midday, the benchmark KSE-100 index had surged by 700.25 points, or 0.82%, reaching 85,950.34 points, up from the previous session’s close of 85,250.09 points.
Sana Tawfik, an economist at Arif Habib Limited, attributed today’s rally to the renewed political clarity, indicating that stability in governance has positively impacted investor sentiment.
“Overall, there is a certainty. After the noise that was created over the amendment on the political front, we have seen that there has been clarity in the market which has resulted in a hike in the market today.”
Explaining another reason, she said that the refineries are trending with cement being among the top trends.
In the coming days, she said, on November 4, the investors are also awaiting the monetary policy, which is expected to see a 200-point cut.
“So, overall these are the factors. And of course, it’s result season. As the results will be released, the expected result also works as a trigger in the market. So far, the market has only observed positive developments that have been driving the market.”.