On Tuesday, the Pakistan Stock Exchange (PSX) continued its upward momentum following the passage of the 26th Amendment, testing a new all-time high above 86,800 points.
With major companies poised to deliver attractive returns, investor sentiment received a significant boost amid growing hopes for political and economic stability.
The benchmark KSE-100 Index jumped 798 points during early intraday trading, reaching 86,846, compared to the previous day’s close of 86,057. This surge came after a period of cautious trading, as the capital market reacted positively to the political changes brought about by the ruling coalition’s efforts to enforce the 26th Amendment. This amendment aimed to reduce the powers of the superior judiciary, particularly in appointing the Chief Justice, thus alleviating weeks of political uncertainty.
The constitutional changes were approved during an extraordinary parliamentary session convened on a public holiday, which extended through the night and concluded early Monday morning.
According to the amendment, the Chief Justice of Pakistan will now be nominated by a Special Parliamentary Committee from the three most senior judges of the Supreme Court, along with various other procedural adjustments.
This newfound stability spurred significant buying activity across multiple sectors, including automobile manufacturing, cement, chemicals, commercial banking, and oil and gas exploration.
Notably, index-heavy stocks like Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), Sui Southern Gas Company (SSGC), Habib Bank Limited (HBL), and Meezan Bank Limited (MEBL) saw substantial gains.
Khurram Schehzad, CEO of Alpha Beta Core, commented on the rally, attributing it to improved economic and political conditions.
He noted that investors are optimistic about potential declines in inflation and interest rates, while also keeping an eye on the finance minister’s upcoming visit to the U.S.
