PSX snaps losing streak with 487-point rally

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KARACHI : The Pakistan Stock Exchange (PSX) turned green amid positive sentiments on Tuesday after five continuous red sessions, with the benchmark KSE-100 Index advancing 487.39 points (+1.11 percent) to close at 44,563.59 points.

The KSE-100 Index opened on a positive note and maintained this trend throughout the session touching an intraday high of 44,620.41 points.

Among other indices, the KSE All Share Index gained 136.48 points (+0.46 percent) to close at 30,072.12 points, while All Share Islamic Index gained 155.95 points (+0.73 percent) to close at 21,651.18 points.

A total of 371 companies traded shares in the stock exchange, out of them shares of 242 closed up, shares of 110 closed down while shares of 19 companies remained unchanged.

The overall market volumes decreased by 16.94 million to 221.50 million shares, while market capitalisation increased by Rs35.09 billion. The number of total trades decreased by 5,442 to 81,389, and value traded decreased by Rs1.23 billion to Rs10.09 billion.

Among scrips, UNITY topped the volumes with 33.87 million shares, followed by TELE (26.29 million) and GGL (23.57 million). Stocks that contributed significantly to the volumes include UNITY, TELE, GGL, TRG and HASCOL, which formed 50 percent of total volumes.

Foreign institutional investors were net buyers of Rs37.4 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.

The sectors propping up the index were technology & communication with 127 points, commercial banks with 84 points, fertilizer with 61 points, cement with 43 points and food & personal care products with 27 points. The most points added to the index were by TRG which contributed 116 points followed by LUCK with 38 points, HBL with 32 points, UNITY with 31 points and MCB with 23 points.

Sector-wise, the index was let down by tobacco with 26 points, transport with 2 points and glass & ceramics with one point. The most points taken off the index was by PAKT which stripped the index of 26 points followed by KTML with 8 points, NESTLE with 6 points, ICI with 5 points and DGKC with 3 points.

Analysts at Arif Habib Limited said that the market performed well on Tuesday, adding a total of 544 points on the board and closed at a high note. Resolution of roll-over uncertainty in TRG helped investors take a positive view on the stock resulting in TRG hitting the upper circuit. NETSOL on the other hand, remained under pressure with stock at lower circuit for the consecutive session. Oil prices also bounced overnight that helped E&P companies to inch up.

According to the analysts, the major trigger for the rally was a 57 percent year-on-year improvement in local oil sales to 1.67 million tonnes in the month of April which shows an uptick in overall economic activity despite virus spread.

According to a closing report by Topline Securities, investors’ sentiments in bourse were also buoyed due to the statement from Finance Minister Shaukat Tarin, stating that a policy has been prepared to shift from stabilisation mode to economic growth and there might be some renegotiation with the International Monetary Fund (IMF) over a delay in an increase in power tariff.