KARACHI: Pakistan Stock Exchange on Monday witnessed a bullish trend and closed on strong positive note with healthy gains on the back of more inflows, mainly from Saudi Arabia and other friendly countries.
The market opened on strong positive note and remained bullish throughout the session. The rally was led by large cap stocks including OGDC, PPL, HBL and PSO.
The benchmark KSE-100 Index surged by 957.60 points or 2.03 percent and crossed 48,000 psychological level after 24 months to close at 48,034.60 points.
Trading activity also improved as total daily volumes on ready counter increased to 491.874 million shares as compared to 455.106 million shares traded on previous session. The traded value on ready counter increased to Rs 17.884 billion against previous session’s Rs 17.879 billion.
BRIndex100 added 113.36 points or 2.37 percent to close at 4,899.23 points with total daily turnover of 456.943 million shares.
BRIndex30 increased by 651.77 points or 3.87 percent to close at 17,476.46 points with total daily trading volumes of 340.809 million shares.
Foreign investors also remained net buyers of shares worth $3.263 million. Total market capitalization increased by Rs 133 billion to Rs 7.231 trillion. Out of total 358 active scrips, 188 closed in positive and 144 in negative while the value of 26 stocks remained unchanged.
WorldCall Telecom was the volume leader with 49.335 million shares however lost Rs 0.03 to close at Rs 1.36 followed by K-Electric that gained Rs 0.12 to close at Rs 2.42 with 39.447 million shares. Cnergyico PK inched up by Rs 0.13 to close at Rs 3.48 with 32.410 million shares.
Unilever Foods and Nestle Pakistan were the top gainers increasing by Rs 1050.00 and Rs 60.00 respectively to close at Rs 23850.00 and Rs 6950.00 while Sanofi-Aventis and Pak Services were the top losers declining by Rs 30.40 and Rs 24.79 respectively to close at Rs 720.00 and Rs 725.21. “Anticipation of more Saudi money along with the Pakistan Mineral Summit lifted the KSE-100 Index further to cross 48,000,” an analyst at Arif Habib Limited said.
The large caps again led the way with OGDC PA (up 7.5 percent), PPL PA (up 6.7 percent), HBL PA (up 7.15 percent), and PSO PA (up 4.94 percent) all seeing strong gains.
The KSE-100 Index gained 16.63 percent in USD terms in July 2023 ranking it 2nd globally after Turkey. July has seen around $20 million net inflow from Foreign Corporates (FC) a number that has only been crossed four times since 2018 with the last occurrence taking place in January 2022 ($20.77 million). Continued FC buying will be very bullish given that this segment has net sold $2.7 billion since CY15 having net bought $1.4 billion between 2009-2014. BR Automobile Assembler Index gained 72.92 points or 0.85 percent to close at 8,630.47 points with total turnover of 8.949 million shares.
BR Cement Index added 85.73 points or 1.72 percent to close at 5,067.40 points with 24.060 million shares.
BR Commercial Banks Index increased by 383.57 points or 3.51 percent to close at 11,308.30 points with 83.863 million shares.
BR Power Generation and Distribution Index inched up by 95.89 points or 1.07 percent to close at 9,035.85 points with 48.360 million shares.
BR Oil and Gas Index surged by 182.06 points or 4.21 percent to close at 4,506.12 points with 82.881 million shares.
BR Tech. & Comm. Index closed at 4,059.46 points, up 61.3 points or 1.53 percent with 107.250 million shares.
An analyst at Topline Securities said that a bullish session was observed at the PSX as the KSE-100 Index increased 2 percent to close at 48,035 level, highest closing after August 23, 2021. This positivity in the market can be attributed to news that Pakistan has taken a significant step towards commencing the construction of the $10 billion Greenfield refinery project in Baluchistan that will be jointly developed with Saudi Aramco by reaching an EPC agreement with a Chinese company, crucial requirement set by Saudi Arabia for its $3.0 billion equity investment in the project.
News that Pakistan’s new Special Investment Facilitation Council (SIFC) - a hybrid civil-military forum - has in principle approved 28 projects worth billions of dollars that would be offered to Gulf countries for investment provided further stimulus to the market.
Major contribution to the index came from E&P and banking companies as OGDC, HBL, PPL, MEBL and BAHL cumulatively contributed 485 points to the index.
Copyright Business Recorder, 2023
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