KSE-100 gains 505 points as volume registers substantial increase

Volumes hit their highest level on the all-share index since March 10 with the benchmark KSE-100 gaining 505 points on Tuesday, as falling oil prices helped revive investor sentiment at the Pakistan Stock Exchange (PSX).

The KSE-100 Index gained throughout the day to cross the 44,000-point level, and settled 1.15% higher, its third-biggest increase this year. At close on Tuesday, the KSE-100 ended with a gain of 505.14 points, or 1.15%, to finish at 44,438.70. This is the KSE-100's fourth successive positive finish.

“Clarity on the political front helped revive investor-interest,” said Capital Stake in its post-market note.

The clarity comes after the ruling Pakistan Tehreek-e-Insaf (PTI) government on Monday announced Chaudhry Pervaiz Elahi of Pakistan Muslim League-Quaid (PML-Q) – a key ally of the PTI in the Centre and Punjab – as its candidate to replace Usman Buzdar who offered his resignation.

"Investor participation in the market stayed healthy due to decline in international oil prices. Cement sector remained in the limelight due to decline in international coal prices. Across the board buying activity was observed," said brokerage house Arif Habib Limited.

On the economic front, the government of Pakistan and the Asian Development Bank (ADB) also signed the Capital Market Development Programme (Subprogram 2) amounting to $300 million.

Late recovery at PSX pushes KSE-100 close to 44,000

Sectors driving the benchmark index upward included cement (78.56 points), power generation and distribution (68.53 points) and oil and gas marketing (45.33 points).

Volume on the all-share index increased significantly to 268.91 million from 132.64 million on Monday. The value of shares traded also improved to Rs7.17 billion from Rs4.8 billion recorded in the previous session.

Pak Elektron (R) was the volume leader with 37.68 million shares, followed by WorldCall Telecom with 27.13 million shares, and Ghani Global Holdings with 15.05 million shares.

Shares of 363 companies were traded on Tuesday, of which 247 registered an increase, 87 recorded a fall, and 29 remained unchanged.