KARACHI: Pakistan Stock Exchange (PSX) on Monday witnessed a record surge in the KSE-100 Index after the announcement of IMF’s Standby Arrangement (SBA) worth $3 billion bailout for Pakistan.
The benchmark KSE-100 Index gained 2,446.32 points or 5.90 percent to close at 43,899 points level, which was last seen in May 2022, almost 14 months ago. The rise in the KSE-100 Index on Monday is the highest-ever gain in a single day in terms of points since the KSE-100 Index’s inception in Nov 1991. During the session the KSE-100 Index hit 43,934 points intra-day high and 43,405 points intra-day low.
Analysts at Topline said it is “The Most Bullish Day” at Pakistan equities as far as positive closing (in gaining points) goes. 2,446 points gained by KSE-100 Index. On Monday, the market halted just after 7 minutes from the opening bell in the morning, as the free float index rose 5 percent and remained stable at 5 percent for 5 minutes to trigger Exchange halt.
The Monday’s halt was the quickest “Bull Run Market Halt” (happened at 9:37am) as previously investors experienced “Bull Run Market Halt” on April 17, 2020 at 10:52am, signaling bullish aggressiveness and further price appreciation in the days to come in stocks at PSX. Over 40 percent of the index constituents were hit their limit up for the day and there was no seller even at their upper circuit too.
The bullish rampage was due to Pakistan IMF’s SBA and this development has not only subsided the country’s default scenario but also met the pre-requisite condition to unlock different bilateral and multilateral funding.
The daily volumes on the ready counter surged to 382 million shares as compared to 234.7 million shares traded in the previous session. While total daily traded value on the ready counter also rose to Rs 8.6 billion as against previous session’s Rs 7 billion.
On Monday, BRIndex100 increased by 285.89 points or 6.97 points to close at 4,389.29 points up from 4,103.40 points . It touched an intraday high of 4,391.29 and an intraday Low of 4,103.40 with total volume of 342.894 million shares.
BRIndex30 opened at 14,135.32. It touched an intraday high of 15,234.30 and an intraday Low of 14,135.32 and closed at 15,226.15 which was 1090.83 points or 7.72 percent higher than previous close. Total volume at BRIndex30 was 236.623 million shares.
Analysts said that stocks showed highest ever surge after IMF staff level agreement (SBA) to secure $3 billion bailout financing and Barclay’s ratings upgrade to market weigh on Pakistan Sovereign Bonds.
They said that massive surge in Pakistan Euro bonds after hopes new financing from other bilateral and multilateral agencies, Moody’s assertion on IMF program approval to support for macroeconomic stability and 29.4pc upbeat CPI inflation data for Jun’23 played a catalyst role in bullish close.
The market capitalization mounted up by Rs 318 billion to Rs 6.688 trillion up from Rs 6.336 trillion. Out of 357 active scripts, 315 closed in positive, 36 in negative while the value of 6 stocks remained unchanged.
WorldCall Telecom was the volume leader with 55 million shares and closed at Rs1.23, followed by K-Electric that closed at Rs1.96 with 30.5 million shares. Cnergyico pak ranked third with 22.44 million shares and it closed at Rs 3.18.
Nestle Pak and Colgate palm were the top gainers increasing by Rs 152.50 and Rs 76.90 respectively to close at Rs 6,600 and Rs 1,199.72, while Pak Engineering and ZIL Limited were the top losers declining by Rs 24.34 and Rs 22.50 respectively to close at Rs 300.21 and Rs 277.50.
Buying sentiment was observed across the board. However, Tech, Power, Fertilizer, Bank and Cement stocks led the show where SYS, HUBC, ENGRO, UBL & LUCK contributed positively by adding 671 points, collectively.
BR Automobile Assembler Index increased 321.56 points to close at 8,360.32 points with a total turnover of 3.860 million shares. BR Cement Index Closed at 4,931.83 with a net positive change of 344.01 points or a percentage change of 7.5 and a total turnover of 18,229,623.
BR Commercial Banks Index rose by 552.74 to close at 9,115.14 points with a total turnover of 44,851,413. BR Power Generation and Distribution Index closed at 7,929.27 with a net positive change of 478.79 points or a percentage change of 6.43 and a total turnover of 39,681,439.
BR Oil and Gas Index closed at 4,037.00 with a net positive change of 234.19 points or a percentage change of 6.16 and a total turnover of 26,337,074. BR Tech. & Comm. Index closed at 3,880.09 with a net positive change of 276.89 points or a percentage change of 7.68 and a total turnover of 86,550,341.
According to Arif Habib Limited, bulls Triumph the show at PSX and the Benchmark KSE-100 Index opened 5% up by 2,231 Points, halting the session as the bourse continued to trade above 5% after the opening bell. The session resumed with the Bullish momentum to stay Green all day long as investors celebrated the long-awaited SLA by the IMF for a 3 billion dollars standby arrangement.
Copyright Business Recorder, 2023
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