The stocks surged past 86,800 points on Tuesday, extending the rally triggered by the government’s successful enforcement of the contentious 26th Amendment, hovering just below 87,000 points in early day trade with more gains expected during the day.
The Pakistan Stock Exchange’s benchmark KSE-100 Shares Index gained 798 points to touch 86,846 points mark within hours after opening.
High-value blue chips, expected to deliver strong returns, continued to steal the spotlight during this earnings season as hopes of political and economic stability boosted investor sentiment.
The rally follows days of cautious trading, with the recent enforcement of the 26th Amendment ending weeks-long political uncertainty.
The government successfully enacted 26th Amendment, curbing the judiciary’s power to appoint the chief justice, contributing to the market’s positive momentum.
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.
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.
This a developing story and is being updated with more details.
