The KMI-30 index on the Pakistan Stock Exchange on Friday showed an extraordinary surge and crossed the 250,000-point mark. The index closed at 250,496 points after gaining 3,930 points, which is being described as one of the biggest rallies in recent weeks.
According to analysts, the main reason for the market rally was significant buying in the fertilizer and cement sectors. Fauji Fertilizer Company (FFC) contributed the most to the positive contribution of 1,169 points, while Engro, Lucky Cement and Engro Fertilizer also provided strong support to the index.
The market witnessed a significant increase in business activity and more than 141 million shares were traded. Investors’ interest is also linked to the expectation that incentives may be given to the industrial and agricultural sectors in the upcoming budget.
On the other hand, some large shares in the energy and technology sectors remained under pressure. Pakistan Petroleum Limited (PPL) and Systems Limited tried to drag the index down, but overall buying kept the market direction positive.
Experts say that the current performance of the KMI-30 index indicates growing confidence in the Islamic investment sector. The increase in the index by more than 35 percent during the financial year is being considered an important signal for investors.
Business circles are also linking this development to the improvement in the economy and increasing liquidity in the capital market, while according to some analysts, if economic stability continues, the market can achieve new heights.