KSE 100 Index Surges 695 Points Amid Saudi Investment Pledges

Staff Report

KSE 100 Index rallied for a second consecutive day of the week as the index gained 695 points to close at the 70,315 level (up by 1%) amid a Saudi investment boost.

This positivity can be attributed to the commitment reflected by Saudi Arabia to expedite the first wave of an investment package worth $5bn; the agreement includes increasing Saudi deposits in the Central Bank of Pakistan from $3bn to $5bn and injecting investment in oil refinery (Pakistan oil and gas companies joint venture with Saudi Amarco) and copper mines (Reko Dig).

Major positive contributions to the index came from FFC, MEBL, HUBC, MARI, and EFERT as they cumulatively contributed 471 points to the index.

FFC gained to close at its upper limit on channel checks that the company has increased Urea prices by Rs633/bag to Rs4,400/bag. WTL was today`s volume leader with 34 million shares.

KSE 100 Index gained by 2.77% on a WoW basis during the short week before the Eid holidays, as the Prime Minister’s visit to Saudi Arabia with a delegation garnered investor interest in the market. How to invest in the Stock Market for Beginners

The commitment shown by Saudi Arabia to expedite the implementation of an investment plan of $5bn provided further stimulus to the market.

The upcoming Finance Minister’s trip to Washington on April 13 to attend the World Bank and IMF spring meeting and likely discussion with the IMF for the new program also provided confidence to investors.

During the week remittance number for March clocked in at US$2.95bn (up 31% MoM and 16% YoY) – the highest monthly remittances after 22 months.

Average daily traded volume and value during the week stood at 362mn shares and Rs.16.27bn respectively.