Stocks gain over 500 points on back of multiple triggers

Share prices at the Pakistan Stock Exchange rose on Thursday with the benchmark KSE-100 index gaining 508.48 points, or 1.26 per cent, to reach 41,007.82 points.

The market opened at 40,499.34 points and jumped from the get-go, and at one point had created a daily high of 41,086.67 before settling slightly lower.

First National Equities CEO Ali Malik said the 400 per cent dividend announced by Engro Corporation acted as a stimulus for investors to pursue buying in the market.

Engro announced a bumper Rs40 dividend earlier in the day and saw its share price go up by 5.79 per cent.

“Worst days for the market are behind us, and the investors have finally returned to the market,” Malik added.

“The stabilisation of the economy after the persistent fall over the last few months and expectations of positive response from Gulf countries has also boosted investor confidence.

Head of Research at Intermarket Securities, Raza Jafri also credited Engro as well as Bank Al Habib’s “good payouts for the impressive rally before Eid”.

He said the investors were also optimistic about the proposed initiation of talks between political parties over the issue of elections.

“The market is expecting a positive decision by the Supreme court,” he added.

Meanwhile, Arif Habib Corporation’s Ahsan Mehanti said that “good corporate results as well as a current account surplus” — the first one in two years — has “helped restore investors confidence”.

“If the staff-level agreement with the International Monetary Fund (IMF) is also signed, the rise will continue after Eid,” he added.