Benchmark index rises 3.09% to settle at 28,109.57. PHOTO: AFP
KARACHI: Bulls maintained their grip on the Pakistan inventory marketplace for the second consecutive day because the benchmark KSE-100 index powered previous the 28,000-point mark in a rally that noticed a surge of 842 factors on Friday.
The uptrend was fuelled by the measures taken by the State Financial institution of Pakistan (SBP) and Pakistan Banks Affiliation (PBA), coupled with restoration in Asian markets.
Furthermore, hypothesis about possible approval of $1.Four billion in an Worldwide Financial Fund (IMF) mortgage for financial aid additional strengthened traders’ sentiment.
Nevertheless, the market skilled stress throughout intra-day buying and selling over rupee’s volatility towards the US greenback.
At shut, the benchmark KSE-100 index recorded a rise of 842.37 factors, or 3.09%, to settle at 28,109.57.
Arif Habib Restricted, in its report, acknowledged that the market opened on a damaging word with a lack of 20 factors, went additional down by 110 factors and made a gradual restoration.
“Regulatory measures have been taken by the SBP and PBA regarding margins on shares as collateral. Moreover, relaxation in terms of classification of doubtful and bad debt on banks’ financial statements caused much clarity for investors,” it mentioned.
Moreover, shares of metal and cement sectors, which had one of many highest leverages amongst listed industries, made a swift restoration. “Better performance in regional markets also helped boost investor confidence,” it added.
In the meantime, the ability sector topped the volumes desk with buying and selling in 44.7 million shares, adopted by cement corporations (27.7 million) and banks (18.7 million).
Shares that contributed positively to the index included Engro (+107 factors), Hubco (+92 factors), MCB Financial institution (+76 factors), UBL (+65 factors) and Fortunate Cement (+65 factors).
Shares that contributed negatively have been HBL (-29 factors), OGDC (-11 factors), EFU Basic Insurance coverage (-9 factors), Archroma Pakistan (-6 factors) and Abbott Laboratories (-Three factors).
JS World analyst Maaz Mulla mentioned PSX made some restoration in Friday’s buying and selling the place the market touched intra-day excessive of +1,006 factors and closed at 28,109 (up 842 factors).
“Positive sentiment can be attributed to attractive valuations of the KSE-100 index stocks. Overall volumes stood at 169 million shares while traded value came in at $25 million,” he acknowledged.
“Moreover, though the US dollar appreciated against Pakistani rupee in intra-day currency market, it closed below previous day’s level.”
The cement sector loved a rally the place DG Khan Cement (+6.9%), Fortunate Cement (+6.8%), Maple Leaf Cement (+7.5%), Pioneer Cement (+7.5%), Fauji Cement (+7.8%) and Cherat Cement (+7.4%) closed close to their respective higher circuits.
The banking sector noticed heavy participation the place UBL (+6.9%), MCB Financial institution (+6.4%), Financial institution Alfalah (+2.5%) and The Financial institution of Punjab (+1.7%) closed within the inexperienced whereas HBL (-1.8%) remained within the purple.
“Going forward, we expect the market to remain bearish as the coronavirus situation prevails across the globe and recommend investors to remain cautious,” he mentioned.
Total, buying and selling volumes decreased to 169.Four million shares in contrast with Thursday’s tally of 186.7 million. The worth of shares traded throughout the day was Rs4.2 billion.
Shares of 304 corporations have been traded. On the finish of the day, 228 shares closed greater, 56 declined and 20 remained unchanged.
Ok-Electrical was the quantity chief with 41.2 million shares, shedding Rs0.04 to shut at Rs2.71. It was adopted by Unity Meals with 11.Three million shares, gaining Rs0.48 to shut at Rs8.87 and Hascol Petroleum with 10.5 million shares, shedding Rs0.04 to shut at Rs10.92.
Overseas institutional traders have been internet sellers of Rs410.5 million value of shares throughout the buying and selling session, in line with information compiled by the Nationwide Clearing Firm of Pakistan.
