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The Pakistan Stock Exchange (PSX) benchmark index maintained its positive momentum from last week as two index heavyweights, Habib Bank Ltd and Lucky Cement, announced stock buybacks on Tuesday.
At 2:22pm, the KSE-100 index was up 397 points, or 0.96 percent, to 41,978 points.
Salman Naqvi, head of research at Aba Ali Habib Securities, remarked that the market had been performing well for a few days due to the “earnings season,” in which various sectors, including banking and cement, reported higher earnings and declared dividends, resulting in increased buying activity.
“Many companies, including Habib Bank and Lucky Cement, are buying back their shares, which is generating public interest,” he told the press.
According to Naqvi, the market is now being driven by fundamentals, and it appears that political uncertainty is not depressing investor sentiment “as there is no solution in sight.”
However, he warned that the political situation could have an impact on the market in the coming days. Last week, the coalition government and the opposition began talks, raising hopes that political parties were getting closer to resolving the country’s long-standing impasse over when to hold general elections.
Although the outcome of these talks has yet to be determined, analysts believe that the outcome, whether positive or negative, could sway the market in either direction.
The momentum from last week, which was driven by solid business results, continues today, according to Raza Jafri, head of research at Intermarket Securities.
He mentioned that Lucky Cement had announced a second share purchase of up to 23.8 million shares, and that Habib Bank’s parent firm planned to invest approximately Rs3.5 billion in the bank’s stock.
“As a result, these two index heavyweight stocks have hit the upper circuit today, driving the overall market higher.”
