ISLAMABAD (National Times)- Stocks on Tuesday built on post-26th Amendment gains, testing a new all-time high above 86,800 points, with major stocks, forecast to offer attractive payouts, remaining key draws in the first-quarter earnings season amid hopes for political and economic stability.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Shares Index surged 798 points to 86,846 in early intraday trade, up from yesterday’s close of 86,057 points.
After days of cautious trading, the capital market rallied following the enforcement of the 26th Amendment by the ruling coalition, ending weeks-long political uncertainty.
The government, which remained engaged in intense lobbying to power the changes to the constitution through the parliament for weeks, finally succeeded in clipping the powers of the superior judiciary to appoint its chief justice.
The constitutional changes were approved in an extraordinary session of parliament which was assembled on Sunday, a public holiday, and ran all night, concluding close to dawn on Monday.
“The Chief Justice of Pakistan shall be nominated by the Special Parliamentary Committee…from amongst the three most senior Judges of the Supreme Court,” the text of amendment bill, which had a host of other procedural changes, read.
Various sectors, including automobile assemblers, cement, chemicals, commercial banks, oil and gas exploration companies, oil marketing companies (OMCs), and refineries, experienced significant buying activity.
Index-heavy stocks like Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), Sui Southern Gas Company (SSGC), Habib Bank Limited (HBL), and Meezan Bank Limited (MEBL) are in an upswing.
The first quarter (1QFY2024) corporate earnings season is underway with robust forecasts and bullish investors are increasingly taking positions in high-valuation sectors.
Reacting to the rally, Khurram Schehzad, CEO of Alpha Beta Core, said the index was touching new heights due to economic and political stability.
“Expectations for further declines in inflation and interest rates,” Schehzad said adding that investors were also focusing on the finance minister’s visit to the US.
