- Approval of $1.5 bn assistance by ADB also lends support to equity market
Optimism gripped the Pakistan Stock Exchange (PSX) on Monday as the KSE-100 index rose 0.32%, driven by Pakistan’s exclusion from the Financial Action Task Force’s (FATF) grey-list.
The global watchdog for money laundering and terrorism financing removed Pakistan from its grey-list on Friday after more than four years which boosted investor spirit. Aiding the rise was the Asian Development Bank’s (ADB) approval of $1.5 billion in financing for Pakistan aimed at tackling the challenges arising from floods.
By the end of the session, the KSE-100 Index gained 133.75 points or 0.32% to close at 42,347.23.
The day opened with a jump before the KSE-100 Index turned range-bound after minor fluctuations. The market traded nearly flat for most part of the session, however, the final hours saw modest selling which wiped off few of the gains.
Fertiliser and oil spaces saw buying interest and ended on a positive note with automobile and banking segments closing mixed. On the other hand, the cement sector ended largely in loss.
A report from Capital Stake said that bulls came roaring back at the PSX on first trading session of the week.
“Indices accumulated gains all day long, while volumes fell from last close,” it said. “The news of Pakistan being removed from the FATF’s grey list acted as a positive trigger for the investors.”
Moreover, the ongoing results season also helped in improving investors’ confidence, it said.
A report from Topline Securities stated that Pakistan equities commenced the trading week on a celebratory note due to approval of $1.5 billion from ADB and country’s reclassification into FATF whitelist.
Sectors painting the benchmark KSE-100 index in green included technology and communication (46.41 points), fertiliser (40.89 points) and oil and gas exploration (24.35 points).
Volume on the all-share index declined to 226.7 million from 289.6 million on Friday. Similarly, the value of shares traded dropped to Rs6.05 billion from Rs7.9 billion recorded in the previous session.
WorldCall Telecom was the volume leader with 68.8 million shares, followed by Dewan Motors with 12.4 million shares and Pakistan Refinery with 9.5 million shares
Shares of 343 companies were traded on Monday, of which 160 registered an increase, 149 recorded a fall, and 34 remained unchanged.