KARACHI: Pakistan Stock Exchange (PSX) on the first trading day of the week witnessed bullish activity on easing political concerns.
The benchmark KSE-100 Index gained 790 points to settle at 46,975 points on Monday up from 46,185 points on Friday. Share trading activity also improved and overall volumes increased from 270.4 million shares to 430 million shares.
BRIndex100 increased by 117.63 points or 2.46 percent to close at 4,895 points on the first trading day of the week. It touched an intraday high of 4,930.59 points and an intraday low of 4,826.14 points. Total volume at BRIndex100 was 377.958 million shares and WorldCall was the most traded company with a volume of 53,862,000.
BRIndex30 opened at 20,512.42 point and finally closed at 21,286.96 points, up by 774.54 points or 3.78 percent. It touched an intraday high of 21,539.61 points and an intraday low of 20,743.81 points with total share trading volume of 263.76 million.
The PSX trading was also reverted to Karachi Automated Trading System (KATS) on Monday due to multiple technical issues in the new trading system launched on October 25, 2021.
Ahsan Mehanti of Arif Habib Corp said that bullish activity was witnessed on easing political concerns in the country and resolve over trading systems issue at PSX. In addition, strong rupee recovery, surging global equities and expected announcement on resumption of IMF programme played a catalyst role in bullish close, he added.
With improved activity, market capitalization crossed Rs 8 trillion level to reach Rs 8.063 trillion. Out of total 372 active scrips, 271 closed in positive and 87 in negative while the value of 14 stocks remained unchanged.
World Call Telecom was the volume leader with 53.862 million shares and it closed at Rs 2.46 followed by Byco Petroleum that closed at Rs 7.47 with 24.506 million shares. Hum Network ranked third with 23.207 million shares and its share prices closed at Rs 7.11.
Allawasaya Tex and Nestle Pakistan were the top gainers and increased by Rs 129.57 and Rs 100.00 respectively to close at Rs 2,299.99 and Rs 5,900.00 respectively. Phillips Morris and Sapphire Tex were the top losers declining by Rs 65.45 and Rs 91.30 respectively to close at Rs 830.000 and Rs 1,128.70.
Haris S Khan analyst at Topline said that Pakistani equities started the week on a positive note and closed the day at 46,946.21, up 1.65 percent. Sentiments turned positive as the government announced on Sunday that it had reached an agreement with Tehreek-e-Labbaik Pakistan (TLP) to end a 10-day standoff with the latter.
Sentiments further buoyed after Prime Minister Imran Khan rejected the Oil and Gas Regulatory Authority (Ogra) and Finance Ministry's proposals to increase prices of petroleum products.
Slight profit-taking was witnessed near the close of the session after the monthly CPI clocked in at 9.2 percent YoY for the month of October 2021, which was above market expectations.
BR Automobile Assembler Index rose 244.69 points or 2.85 percent to close at 8,845.05 points with a total turnover of 4.444 million shares. BR Cement Index closed at 6,597.06 points with a net positive change of 243.94 points or a percentage change of 3.84 and total turnover was 66.753 million shares.
BR Commercial Banks Index gained 67.11 points or 0.66 percent to settle at 10,225.95 points with a total turnover of 18.436 million shares. BR Power Generation and Distribution Index closed at 5,550.64 points with a net positive change of 64.99 points or a percentage change of 1.18 and a total turnover of 7,824,851.
BR Oil and Gas Index increased by 67.45 points or 1.74 percent to close at 3,945.13 points with a total turnover of 14,140,655. BR Tech. & Comm. Index closed at 4,204.06 points with a net positive change of 112.7 points or a percentage change of 2.75 and a total turnover of 129,183,306.
Analysts at Arif Habib Limited said that bullish momentum was witnessed in the first half of the market session as the index made an intraday high of 1,059 points due to appreciation of Pak rupee, downturn of commodities' price cycle and easing of political noise. Cement and steel sectors contributed the most in the bull-run.
Expectation of interest rate hike by SBP in the upcoming monetary policy caused profit booking in cyclical stocks and accumulation in banking stocks. Sectors contributing to the performance include Cements (+151pts), Fertilizers (+97pts), E&P (+79pts), Technology (+75pts) and Banks (+29pts).
Copyright Business Recorder, 2021
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