Sentiment on Pakistan Stock Exchange remained bullish Monday as the KSE-100 index made what equity analysts observed the year''s highest gain. Volatile though, the benchmark index ended 1.85 percent or 580 points higher at 31,878 in the first session of the new month as well as new week. Amid reduced trade, which depleted to 134 million shares worth Rs 8.11 billion, foreign investment settled in the red, marking a net selling of $1.49 million.
The market cap rose to Rs 6.77 trillion as majority, 204, of the 335 scrips, appreciated in value. While 107 depreciated and 24 stayed unchanged. Bank of Punjab led volumes with 21.7 million shares. The bank rose to Rs 8.97 at close, thanks to what analysts said a "status quo" announced by the State Bank in new monetary policy announcement Saturday.
Other best performers included Pak Elektron, Fauji Cement, TRG Pakistan, K-Electric, DG Khan Cement, SNGPL, Askari Bank, Habib Metropolitan Bank and OGDC. Futures trade declined to Rs 26 million contracts from Friday''s 59 million. Topline analysts said the week''s opening day saw positive sentiment prevailing on the market. "The benchmark KSE-100 index clocked in the highest gain for this year," they said.
The index, analysts said, was mainly led by index-heavy banking and oil sector stocks. "Banking sector stocks were in limelight as the central bank kept policy rate unchanged at six percent," they said. Major scrips - Habib Bank and United Bank - hit their upper limits, five percent. BKTi index, the index comprising banking sector stocks, rose five percent today. "Banking scrips contributed 353 points to the index," analysts said.
Ahsan Mehanti of Arif Habib Corp also attributed the bull-run to rally in banking and fertiliser scrips on the back of SBP policy rate. Expectation for improved banking spreads, upbeat fertilisers off-take data and upbeat earnings outlook for cash rich corporate impacted the sentiment, he added.
"Limited reduction in local petroleum prices, institutional interest in select cement scrips on impact of new CPEC projects and recovery in crude oil prices played a catalytic role in the bullish activity at PSX," the analyst said. Oil sector stocks also rallied because of what analysts said a downward trend in subsiding global crude oil prices. Resultantly, Pakistan Oilfields and Pakistan Petroleum grew 1.1 and 0.7 percent. Pakistan State Oil also rose 2.9 percent.
Comments
Comments are closed.