PSX emerges back into 40,000 zone: BRIndex100 stages smart rally

Bulls took control of Pakistan Stock Exchange on the back of healthy buying in almost all sectors that supported the bourse to close on strong positive note with hefty gains.

BRIndex100 gained 97.6 points or 2.37 percent to close at 4,216.60 points on Monday. BRIndex100 touched intraday high of 4,219.67 and intraday low of 4,118.14 points. Volumes stood at 491.859 million shares.

BRIndex30 increased by 269.94 points or 1.27 percent to close at 21,602.69 points with a turnover of 336.606 million shares.

The KSE-100 Index surged by 836.57 points or 2.13 percent to close above 40,000 psychological level at 40,124.22 points. Trading activity further improved as daily volumes on the ready counter increased to 557.394 million shares as compared to 431.853 million shares traded last Friday.

The market capitalization increased by Rs 117 billion to Rs 7.628 trillion. Out of total 409 active scrips, 304 closed in positive, only 89 in negative while the value of 16 stocks remained unchanged.

Bank of Punjab was the volume leader with 74.927 million shares. It gained Re 0.78 to close at Rs 12.40 followed by K-Electric that inched up by Re 0.39 to close at Rs 4.59 with 40.850 million shares. Bata Pak and Nestle Pakistan were the top gainers with Rs 92.90 and Rs 92.05, respectively to close at Rs 1,951.01 and Rs 6,490.00. Colgate Palmolive and Highnoon (Lab) were the top losers with Rs 53.00 and Rs 23.42, respectively to close at Rs 1,980.00 and Rs 531.67.

BR Automobile Assembler Index gained 72.89 points or 1.13 percent to close at 6,521.97 points with total turnover of 3.172 million shares. BR Cement Index inched up by 85.66 points or 2.37 percent to close at 3,702.16 points with 59.018 million shares.

BR Commercial Banks Index surged by 440.26 points or 4.85 points to close at 9,521.00 points with 110.953 million shares.

BR Power Generation and Distribution Index increased by 123.22 points or 2.26 percent to close at 5,576.01 points with 47.034 million shares.

BR Oil and Gas Index lost 17.55 points or 0.4 percent to close at 4,360.96 points with 29.302 million shares.

BR Tech. & Comm. Index closed at 979.43 points, up 36.4 points or 3.86 percent with 36.934 million shares.

Maaz Mulla at JS Global Capital said after a wait of exactly 9 months (since February 2019), the market emerged back into the 40,000 territory, as the KSE-100 Index closed at 40,124 level. Bulls remained dominant in the session, as the index reached an intraday high of plus 856 points, before closing up by 836 points.

Volumes during the day touched 557 million, which was the highest volume since the market's peak on May 24, 2019 (52,876 points with 607 million shares).

Major gainers during the day were KEL (up 9.3 percent), PTC (up 8.2 percent), PSX (up 7.9 percent), BOP (up 6.7 percent) and AKBL (up 5.3 percent).

The release of first quarter FY20 fiscal numbers late last week, where the fiscal deficit stood at 0.65 percent of GDP compared to 1.41 percent in the same quarter last year helped provide momentum to the market. Moreover, international credit rating agency Moody's upgrade of Pakistan's credit rating outlook to stable from negative also helped in increasing investor confidence.