KARACHI: Pakistan Stock Exchange witnessed bullish trend during the outgoing two-day trading week ended on June 21, 2024 and hit new historic highest ever levels due to investor strong interest and aggressive buying in various sectors.
The benchmark KSE-100 index surged by 2,103.72 points on week-on-week basis and closed at new highest ever level of 78,810.49 points.
Average daily volumes on the ready counter stood at 461.991 million shares while average daily traded value on the ready counter stood at Rs 20.6 billion.
BRIndex100 added 299.44 points during this week to close at 8,341.08 points with average daily turnover of 378.885 million shares.
BRIndex-30 increased by 930.52 points on week-on-week basis to close at 26,456.69 points with average daily trading volumes of 224.437 million shares.
The foreign investors also remained net buyers of shares worth $642,688.
An analyst at Topline Securities said that the KSE-100 Index gained 2.74 percent on WoW basis, as no increase in taxes on income from equities i.e. capital gain and dividend for filers in budget for FY25 continued to garner investor sentiment.
Increase in taxes on other asset classes in budget announcement and global ratings agency Fitch statement that increase in taxation measures in budget has increased the likelihood of securing an IMF deal also provided support to the market.
“During the two-day trading week, the market sustained its positive momentum, surging from 76,707points to 78,810points, closing an all-time high”, an analyst at Arif Habib Limited said.
Investors remain optimistic amid expectations of the new IMF program, declining inflation, favourable interest rate trajectory, and the shift of funds from fixed income to equities. Moreover, on Friday, the market cap reached a historic level of Rs 10.55trillion, surpassing the previous high of Rs 10.45 trillion set in May’17. Additionally, the State Bank of Pakistan’s exchange reserves increased by $31 million WoW to $9.1 billion. Furthermore, Pak Rupee remained stable against the USD at 278.5.
Sector-wise positive contributions came from Commercial Banks (up 1,486points), Power Generation & Distribution (up 409points), Fertilizer (up 151points), Chemical (up 76points), and Textile (up 55points). Meanwhile, the sectors that mainly contributed negatively were Cement (down 89points), Technology & Communication (down 67points) and OMCs (down 41points). Scrip-wise positive contributors were UBL (up 403points), HUBC (up 397points), MCB (up 278points), HBL (up 248points), and BAHL (up 193points). Meanwhile, scrip-wise negative contributions came from LUCK (down 81points), SYS (down 66points), MARI (down 46points), ENGRO (down 31points), and PSO (down 30points).
Foreign buying was witnessed during the week, clocking in at $ 0.6million compared to a net sell of $5.8 million last week. Major buying was witnessed in Commercial Banks ($2.5 million) and Power ($0.8 million). On the local front, selling was reported by Mutual Funds ($10.0 million) followed by Insurance ($1.3 million).
Copyright Business Recorder, 2024
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