Pakistan Stock Exchange (PSX) witnessed another bullish session, as the benchmark KSE-100 index registered a healthy increase of 354.06 points to close at highest ever level of 46,938.59 points. The market opened on a strong positive note and the index, for the first time in history crossed 47,000 points psychological level on the back of local investors and institutional support.
However, the index could not have sustained this level due to selling mainly by foreign investors in some selective stocks. Daily trading volumes at the ready counter stood at 344.151 million shares as compared to 346.068 million shares traded on previous session. Total market capitalisation surged by Rs 48 billion to Rs 9.380 trillion.
Out of the total 413 active scrips, 204 closed in positive and 194 in negative while the value of 15 stocks remained unchanged. The Bank of Punjab was the volume leader with 30.226 million shares and gained Rs 0.83 to close at Rs 18.28 followed by Power Cement that inched up by Rs 0.83 to close at Rs 14.32 with 26.001 million shares. Pakistan International Bulk Terminal surged by Rs 1.86 to close at Rs 39.22 with 20.580 million shares.
Nabeel Haroon at JS Global Capital said that positivity prevailed in the market as the index gained 354 points to close at new high level of 46,938. The PSMC continued its positive momentum as it closed at its upper circuit. This gain was on the back of automobile assembler''s commitment that it is willing to invest around $460 million for its second plant, in response to which the government gained an indication that it might amend the Auto Policy 2016-21 giving similar incentives to existing players on green field investment. The E&P sector extended its gains as crude oil prices gained to trade above $52/bbl level on the back of support from delay in production increase from Libya and recent Opec decision to cut production level. POL (+2.91 percent) and PPL (+2.12 percent) were top performers of the said sector. HUBC (+1.26 percent) gained for the second consecutive trading session to close in the green zone on the back of extension in the financial closing and Implementation Agreement for its 660x2MW imported coal based power plant.
Ahsan Mehanti at Arif Habib Corporation said that the index showed another record close led by selected scrips across the board on strong valuations. He said that surge in WTI crude prices near to $53/barrel, rising banking spreads and speculations ahead of revised auto policy played a catalyst role in new highs of the benchmark index.