The first day of the year has surely proven to be a happy one for investors as they rushed to grab shares of cement, power and the oil sector. The buying spree added 822 points in the first session which closed at 44,578 points.
Prime Minister Imran Khan recently announced a historic package for the construction sector, just before New Year’s eve. Investors welcomed this package and started their new year celebration today. Apart from the construction sector package, the government also announced measures to resolve the circular debt issue which will improve the liquidity of the power generation sector. Analysts believed that power and cement sectors were the main reason behind this bullish trend at PSX.
“There is upper-lock on most of the oil and gas companies including Pakistan State Oil (PSO), Hubco Capco and others,” said Jawwad Rauf, Investment Banking Consultant at Inter-Market Securities.
“Circular debt was the most complicated issue for the government and with the resolution of this issue, IPPs and oil and gas companies will recover their stuck-up amount from the government, he further said.
Ali Poonawala, research head at AKD Securities said, “Improved power sector liquidity and possible hike in base electricity tariff are the main reasons.”