PSX gains 310 points on improved macro indicators


Benchmark KSE-100 index rises 0.68% to settle at 45,654.34
The Pakistan Stock Exchange (PSX) continued with the bullish trend on Friday and the benchmark KSE-100 Index gained 309.8 points (+0.68 percent) to close at 45,654.34 points.
Main driving force behind this bullishness was the rise in leading macro indicators such as growth in exports and a steady increase in SBP forex reserves that boosted investors’ confidence. The index gained 1,219 points (2.74 percent) during the week compared to the previous week’s closing. Since the start of the New Year, the index return has been 4.34 percent or 1,898 points.
The KSE-100 Index remained positive throughout the session touching an intraday high of 45,916.33 (+571.79 points). It settled higher by 309.80 points at 45,654.34. Among other indices, the KMI-30 Index gathered 310.17 points to close at 73,990.13, while the KSE All Share Index added 237.10 points, ending at 31,889.53.
The overall market volumes increased from 641.41 million shares in the previous session to 696.43 million shares (+8 percent). Average traded value, however, declined by 15 percent, from $159.5 million to $135.1 million.
Byco Petroleum Pakistan Ltd (BYCO +6.12 percent), Hum Network Ltd (HUMNL +4.55 percent) and Pakistan Refinery Ltd (PRL +1.66 percent) led the volume chart, exchanging 163.81 million, 44.94 million and 38.01 million shares, respectively.
Sectors that painted the benchmark index green included banking (+158.79 points), textile composite (+24.46 points) and engineering (+24.21 points). Stocks that contributed positively to the index include UBL (+49 points), MCB (+38 points), OGDC (+26 points), BAHL (+25 points) and HBL (+21 points).
Adding 1.65 percent to its total market capitalisation, the banking sector ended as the session’s top performer, with HBL (+0.89 percent), MCB (+2.04 percent) and UBL (+3.13 percent) posting decent gains.
The index was let down by oil & gas marketing companies with 16 points, cement with 7 points, vanaspati & allied industries with 5 points, synthetic & rayon with 2 points and automobile parts & accessories with one point.
Stocks that contributed negatively include FFC (-17 points), PSO (-15 points), MARI (-11 points), KOHC (-6 points) and UNITY (-5 points).
Analysts at Arif Habib Limited said that improvement in leading macro indicators such as growth in exports (highest monthly number since Sep 2013) as well as consistent increase in SBP forex reserves had the investors maintain an upbeat sentiment, especially on the banking sector stocks, which were relatively laggard in the previous bull run.
Meanwhile, in a notification to the exchange, DG Khan Cement Company Ltd informed that it has completed and commissioned a 10MW waste heat recovery power plant at its site in Hub, Lasbela.