The Pakistan Stock Exchange (PSX) witnessed a continued hold by the bulls on Friday, as investors showed interest in selected shares, anticipating positive announcements in the federal budget for FY24 and having high Budget Expectations later in the day.
Investor Participation Declines Ahead of Budget Release
Although the market opened on a positive note, investor participation decreased as many chose to wait on the sidelines in anticipation of the budget release. However, some investors took advantage of the situation and added stocks to their portfolios through careful selection.
Positive Pre-Budget Rally
Ahsan Mehanti, CEO of Arif Habib Commodities, stated, “Stocks rebounded in a pre-budget rally, driven by cement and industrial shares, based on the projection of a 3.5% GDP growth in FY24 and the proposed allocation of Rs950 billion for the federal development budget. The expectations of a status quo in the State Bank of Pakistan’s monetary policy announcement next week and an anticipated budget favorable to the International Monetary Fund played a significant role in the market’s bullish closing.”
KSE-100 Index Records Increase
By the end of the session, the benchmark KSE-100 index showed a gain of 217.75 points, or 0.52%, and settled at 41,904.21.
Topline Securities noted that the KSE-100 index mostly traded in positive territory. It further mentioned, “Investor participation declined as they preferred to wait for the announcement of the FY24 budget.”
According to the NCCPL, foreign investors were net sellers of shares worth Rs64.12 million during Friday’s trading session.
Published in PakWeb, June 9th, 2023.
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