Market watch
Benchmark KSE-100 index advances 353.26 points to settle at 42,188.11
news desk
KARACHI
Pakistan Stock Exchange (PSX) witnessed another bullish session on Thursday, as the benchmark index continued to accumulate gains while volumes jumped to the highest level seen in a decade.
Rising exports helped Pakistan stock market hit a seven-month high, as the KSE-100 index gained another 353.26 points to close at seven-month high 42,188.11 points.The last time when KSE-100 was above 42,000 points was on January 29.
The benchmark KSE-100 Index remained in the green zone throughout the day, registering its intraday high at 42,212.93 after gaining 377 points. It settled higher by 353.26 points at 42,188.11.
Among other indices, the KMI-30 Index gathered 701.95 points to end at 67,533.60, while the KSE All Share Index added 303.31 points, closing at 29,780.50.
The overall market volumes jumped from 837.02 million shares in the previous session to 919.45 million shares (+10pc). Average traded value also inched up by 1pc, from $157.6 million to $159.9 million. Unity Foods Limited (UNITY +4.59pc), Bank of Punjab (BOP +4.02pc) and K-Electric Limited (KEL +0.70pc) led the volume chart, exchanging 51.41 million, 49.76 million and 41.81 million shares, respectively.
Sectors that drove the benchmark index north included cement (83.52 points), banking (49.21 points) and oil & gas marketing (41.77 points). Among the companies, Maple Leaf Cement Factory Ltd (MLCF 29.00 points), Systems Limited (SYS 26.80 points) and MCB Bank Ltd (MCB 24.33 points) remained the top contributors.
Adding 3.60pc to its cumulative market capitalization, the refinery sector emerged as the session’s top gainer, with Byco Petroleum Ltd (BYCO 5.60pc), Attock Refinery Ltd (ATRL 2.79pc) and National Refinery Ltd (NRL 2.22pc) posting decent gains.
“Investor sentiment at PSX has been sky high in recent times, especially on the announcement by the prime minister regarding his visit to Karachi tomorrow,” said a report issued by Arif Habib Limited. “Infrastructure development is expected to positively impact construction sector scrips, which prompted investors to take interest in cement and steel sectors,” said the report.
Naushad Chamdia, CEO of Standard Capital, stated that high net worth individuals and the general public are re-entering the Pakistani market due to a rebound in indicators, adding that SBP lowering policy rates will result in “beefed up profits of companies.”
Chamdia said, “The outlook of companies listed at PSX in construction-related and auto allied sectors are poised to show phenomenal growth in FY21.”
In addition, he feels that the announcement of projects by the government will help improve the fundamentals of listed companies.
Hamza Kamal, Equity Analyst at AKD Securities, said that investors have divested from other asset classes considering their non-lucrative returns, in particular bonds. This is a major reason behind the interest in equities.
He added, “Compared to real estate returns, equities offer avenues for small scale investors. In the case of the latter, it has been individuals that have been driving the market lately (CYTD net inflow from individuals stands at $152.5 million, highest relative to other local groups of investors).”
