Pakistan Stock Exchange (PSX) Tuesday achieved another milestone as the benchmark KSE-100 index, for the first time in its history, closed above 47,000 psychological level on the back of local investors'' support. Foreign investors, however remained net sellers of shares withdrawing $8.5 million from the bourse. The index closed at the highest-ever level of 47,210.06 points with the net gain of 271.47 points.
Trading activity also improved as the daily trading volumes increased to 450.313 million shares as compared to 344.151 million shares trading Monday. The market capitalisation increased by Rs 21 billion to Rs 9.401 trillion. Out of total 429 active scrips, 252 closed in negative and 164 in positive while the value of 13 stocks remained unchanged. Dost Steels was the volume leader with 58.424 million shares. It gained Rs 0.91 to close at Rs 11.56 followed by Bank of Punjab that lost Rs 0.20 to close at Rs 18.08 with 27.131 million shares. Engro Polymer increased by Rs 0.78 to close at Rs 17.42 with 23.829 million shares.
Rafhan Maize and Wyeth Pak were the top gainers with Rs 196.50 and Rs 136.94, respectively to close at Rs 8,197.50 and Rs 4,790.25. Nestle Pakistan and Bata Pak were the top losers with Rs 90.00 and Rs 70.00, respectively to close at Rs 8,610.00 and Rs 4,630.00.
Nabeel Haroon at JS Global Capital said that volatility prevailed in the market during the initial hours of the trade but heavy buying came in during the latter hours. Intra-day rally was witnessed in the banking sector, as it gained to close (+2.8 percent) higher than its previous day close. HBL and UBL were the major index movers of this sector and increased by 5.0 percent and 3.47 percent respectively. Profit taking was witnessed in the E&P sector on the back of normal decline in crude oil prices, as it lost value to trade below $52/bbl. POL and OGDC were the major losers of this sector declining by 2.17 percent and 1.21 percent respectively. HUBC gained for the third consecutive trading session and increased by 3.66 percent 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 benchmark index surges to new highs on speculations in the year-end rally in the financial sector. The bullish trend continued amid institutional interest in banking and energy stocks. He said rising banking spreads and renewed interest in high yielding energy stocks owing to excess liquidity played a catalyst role in the record close.