KARACHI: Pakistan Stock Exchange on Monday witnessed a bullish trend and closed on strong positive note with healthy gains due to investor strong interest after upgradation of Pakistan’s rating by Fitch Ratings and expectations regarding further cut in interest rate.
The benchmark KSE-100 Index surged by 798.23 points or 1.02 percent and closed at 78,827.74 points. During the session, the index crossed 79,000 psychological level to hit 79,055.99 points intra-day high however closed at slightly lower level due to profit taking in some stocks.
Trading activity also improved as total daily volumes on ready counter increased to 371.087 million shares as compared to 278.327 million shares traded on last Friday while total daily traded value on the ready counter increased to Rs 19.156 billion against previous session’s Rs 11.621 billion.
BRIndex100 added 118.25 points or 1.44 percent to close at 8,351.61 points with total daily turnover of 295.848 million shares.
BRIndex30 increased by 339.82 points or 1.32 percent to close at 26,174.46 points with total daily trading volumes of 170.000 million shares.
Foreign investors however remained net sellers of shares worth $828,460. Total market capitalization increased by Rs 109 billion to Rs 10.497 trillion. Out of total 437 active scrips, 252 closed in positive and 129 in negative while the value of 56 stocks remained unchanged.
Waves Home App was the volume leader with 27.932 million shares however lost Rs 0.19 to close at Rs 9.82 followed by Al-Shaheer Corp that closed at Rs 7.03, down Rs 0.15 with 15.548 million shares. Dewan Motors increased by Rs 1.96 to close at Rs 43.86 with 14.274 million shares.
Unilever Pakistan Foods and Sazgar Engineering Works were the top gainers increasing by Rs 139.96 and Rs 104.33 respectively to close at Rs 18,289.96 and Rs 1,147.61 while Rafhan Maize Products Company and PIA Holding Company LimitedB were the top losers declining by Rs 86.43 and Rs 40.96 respectively to close at Rs 7,512.56 and Rs 911.25.
An analyst at Topline Securities said that Pakistan equities initiated the week on a bullish mode ahead of key Monetary Policy Meeting scheduled to announce in the evening. The KSE-100 index witnessed positive momentum almost throughout the day and closed the day’s affairs at 78,828 levels, an increment of 798 points (up 1.02 percent).
Across the board buying was witnessed in the blue-chip stocks as majority on the street is anticipating 100-150 bps reduction in the interest rates on the backdrop of declining inflation trend and improved macros. Fitch rating upgrade has worked cherry on the top as far as the positive trend goes, where the international rating agency elevated Pakistan’s Long-Term Foreign Currency Issuer Default Rating (IDR) to ‘CCC+’ from ‘CCC’.
During the day, UBL, FFC, POL, OGDC and MCB contributed positively by adding 452 points, cumulatively. On the flip side, HUBC, ENGRO and HBL saw some profit taking as they lost 84 points.
BR Automobile Assembler Index surged by 771.49 points or 4.27 percent to close at 18,822.39 points with total turnover of 24.499 million shares.
BR Cement Index increased by 107.05 points or 1.39 percent to close at 7,830.12 points with 37.908 million shares.
BR Commercial Banks Index soared by 231.36 points or 1.03 percent to close at 22,611.08 points with 24.841 million shares.
BR Power Generation and Distribution Index lost 57.22 points or 0.32 percent to close at 17,960.87 points with 17.828 million shares.
BR Oil and Gas Index added 108.1 points or 1.64 percent to close at 6,714.89 points with 22.885 million shares.
BR Tech. & Comm. Index gained 31.97 points or 0.8 percent to close at 4,029.29 points with 47.435 million shares.
Ahsan Mehanti at Arif Habib Corporation said that stocks closed sharply higher amid Fitch Ratings upgrade on Pakistan’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘CCC+’ likely to stabilise rupee and improve foreign inflows.
He said investor expectations for SBP policy rate cut and hopes for Moodys raising its ratings on new government initiatives played a catalyst role in bullish close at PSX.
Copyright Business Recorder, 2024
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