PSX Afternoon Update: Stock Market carries forward yesterdays momentum

Optimism drives the market forward, continuing on yesterday’s momentum. The market since its opening has witnessed 1.19% rise in value. Peaking at 52110 points at 11 o clock, the market is moving forward in a positive manner. The positive sentiment is driven by the performance of commercial banks, cement, power generation and distribution, automobile assemblers.

With expected increases in outlay of expenditure projects for the development projects in the upcoming budget has helped cement gain points since morning. The cement and power generation sector are also bullish on the approval of various projects under the FWO-KP agreement worth $11 billion. The projects listed in the official statement were; 600 megawatts hydroelectric power plants with a cost of $1.10 billion, an oil refinery worth $600 million and a cement factory which would cost up to $160 million. Two megacities will also be constructed in the KP region, CPEC City project will cost around $4.4 billion, and 62,000 residential plots will be constructed in the mega housing project spread over 80,000 kanal.

The emphasis on early completion of projects form the sitting government before the polls will have more than 25% of the budget allocation. These allocations forecast an increased spending in the cement, power generation, and engineering sectors.

The stock market has been bullish on these new reports ever since the opening.

Furthermore the commencement of operations from the EFG Hermes in the local market has also sent a wave of optimism throughout the market.

The market is currently trading at 51983.89 points. During the three hours session, it has reached a high of 52110.87 and a low of 51373.51 points.