Market watch
Benchmark index increases 0.72% to settle at 46,580.34
TLTP
KARACHI
The Pakistan Stock Exchange (PSX) witnessed a bullish trend on Tuesday after initiation of agreement between HUBCO and Central Power Purchasing Agency, and the benchmark KSE-100 Index gained 331.89 points (+0.72 percent) to close at 46,580.34 points.
The KSE-100 Index remained positive throughout the session touching an intraday high of 46,642.70 points. Among other indices, the KSE All Share Index gained 166.89 points to close at 32,167.97 points and All Share Islamic Index gained 165.8 points to close at 22,808.65 points.
A total of 429 companies traded shares in the stock exchange, out of them shares of 209 closed up, shares of 202 closed down while shares of 18 remained unchanged. Overall volume decreased by 225.55 million to 468.06 million shares, while market capitalisation increased by Rs43.72 billion. The total number of trades decreased by 39,091 to 176,066. The value traded decreased by decreased by Rs7.28 billion to Rs23.26 billion.
Among scrips, HASCOL led the table with 43.9 million shares, followed by KEL (34.2 million) and PIBTL (22.5 million).
Sectors propping up the index were oil & gas exploration companies with 101 points, power generation & distribution with 88 points, oil & gas marketing companies with 61 points, commercial banks with 34 points and pharmaceuticals with 30 points. The most points added to the index was by HUBC which contributed 87 points followed by PSO with 65 points, OGDC with 39 points, POL with 36 points and MCB with 27 points.
Sector wise, the index was let down by engineering with 13 points, refinery with 4 points, chemical with 4 points, automobile parts & accessories with 4 points and vanaspati & allied industries with 4 points. The most points taken off the index was by HBL which stripped the index of 21 points followed by HASCOL with 12 points, INIL with 11 points, MEBL with 8 points and DGKC with 5 points.
PSO emerged as Tuesday’s star performer, as its stock went up by 5.62 percent as the company posted the largest volumetric growth of 31 percent YoY in sales of petroleum products, driven by over 2 times YoY increase in FO sales.
HUBCO performed exceptionally too as its stock went up by 4.49 percent after the company announced an agreement with Central Power Purchasing Agency (Guarantee) Limited in furtherance of the memorandum of understanding dated 21st August 2020.
OGDC too saw an increase in its share price by 2.45 percent after it announced discovery of gas and condensate from exploratory well Sial-1, which is located in district Hyderabad.
Analysts at Arif Habib Limited said that signing of IPP’s agreement by HUBCO motivated the investors to take positions in PSO and HUBCO, resulting in HUBCO driving the market with an overall increase of 394 points during the session. Similarly, overnight increase in crude oil prices by 3.5 percent caused the E&P sector stocks to react late but assertively contributed to the upsurge in Index.
PSO made a new high on the back of closure of deal with IPPs, which opens the door for resolution of circular debt to O&GMCs. Banking, Refinery and Cement sector stocks saw profit booking that brought the index in the closing session to a net increase of 332 points (unadjusted), said the report.
