Stocks surged on Tuesday with world markets that reacted positively to reports that Omicron, the South African origin variant of the Covid-19, was not as deadly as thought before and that initial data was quite encouraging, traders said.
KSE-100 Share Index grabbed 572.72 points or 1.32 percent to rise to 43,853.49 points, while during the session it explored a high of 44,065.89 and a low of 43,280.77 points.
The World Health Organization had designated the Omicron variant as being “of concern” less than two weeks ago.
The markets have been on a roller-coaster ride since then; however, there is no guarantee that it has stopped just yet as a negative Omicron headline would take little time to change the scene.
Ahsan Mehanti at Arif Habib Corp said Pakistan Stock Exchange's (PSX) benchmark index closed bullish as investors weighed global equities bull-run and surging global crude oil prices.
Saudi fund, rupee gains, and upbeat data on cement dispatches up 6.9 percent year-on-year in November 2021 helped stocks soar, Mehanti added.
KSE-30 Shares Index also rose by 228.29 points or 1.36 percent to 17,005.73 points against 16,777.44 points.
Traded shares increased 53 million to 229.37 million from 176.91 million. Traded value rose to Rs8.37 billion from Rs6.08 billion. Market capital ticked up to Rs7.516 trillion from Rs7.418 trillion. Out of 347 actives in the session, 247 jumped, 82 slid, and 18 ended neutral.
Topline Securities in its market wrap said after a gap-up opening, the market made an intraday high of 785 points as investors cheered the news that PDM (Pakistan Democratic Movement) had deferred their plans of tendering resignations and staging “Mehngai March” (a march against inflation), the brokerage said.
Sector-wise, initial positivity came from the technology and communication sector that saw TRG closing at its upper circuit, followed by SYS, which contributed 33 points in the index.
Meanwhile, investors’ interest was also witnessed in energy sector on the back of higher international oil prices and as a result OGDC, PPL, and POL closed on a higher note, the Topline report added.
The highest increase was recorded in shares of Unilever Foods, rising Rs449.99 to Rs19,949.99/share, followed by Rafhan Maize that gained Rs291 to close at Rs9,800/share.
Allawasaya Textile led the losers by falling Rs202.50 to Rs2,497.50/share, followed by Colgate Palmolive that decreased Rs49.99 to Rs2,450/share.
Arif Habib Limited in a note said it was a positive day for the benchmark index, as the news about the reduced risk of new Covid-19 variant Omicron helped the international commodities and equities to rally across the globe.
The index opened on a positive news and rallied more than 785 points intraday as investors participated in energy stocks amid expected resolution of gas circular debt, said the report.
Telecard Limited led volume chart with 27.00 million shares, followed by TPL Properties that recorded a turnover of 15.71 million shares.
Stocks that recorded significant turnover included Treet Corp, Hascol Petrol, Unity Foods Ltd, Byco Petroleum, WorldCall Telecom, Oil and Gas Development Company, Ghani Global Holding, and TRG Pakistan Ltd.
Turnover in the future contracts increased to 95.25 million shares from 69.03 million shares on Monday.