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Monday February 26, 2024

PSX crosses 62,000 mark with a gain of over 800 points

Analyst says bulls are driving PSX as market participants are hoping for rate cut in next week's MPC meeting

By Business Desk
December 04, 2023
A stock broker can be seen speaking on call while looking at his screen. — AFP/File
A stock broker can be seen speaking on call while looking at his screen. — AFP/File

KARACHI: The Pakistan Stock Exchange (PSX) maintained a positive trend on Monday with a gain of over 800 points as the benchmark index crossed the 62,000-point milestone. 

The benchmark KSE-100 index reached 62,912.61 points during the intraday trading. However, it closed lower at 62,493.05 points after gaining 801.80 points or 1.30%, up from yesterday’s close of 61,691.25 points.

Raza Jafri, head of equity at Intermarket Securities, said that despite the Consumer Price Index (CPI) for November showing high inlfation, some market participants expect a rate cut in next week's Monetary Policy Committee's (MPC) meeting.

He added that cheap energy stocks were also attracting interest in hopes of improvement in circular debt, adding that there is "still a lot of room for money to rotate from fixed income into equities and it may have started to happen".

Stocks ended last week on a triumphant note, with the benchmark index clinching a fresh all-time high on Friday, buoyed by a surge in foreign portfolio investment and a series of encouraging economic indicators, including a strengthened rupee following the rollover of a $3 billion deposit by Saudi Arabia.

"Stocks closed a new all-time high amid rupee stability after Saudi deposit rollover, strong key economic data and surging foreign portfolio investment," said analyst Ahsan Mehanti at Arif Habib Limited.

"The reports of $30 million net FIPI over 6 year high during November 2023, and government deliberations over privatisation of ailing SOEs played a catalytic role in the record close."

Overall trading volumes reached 734.2 million shares compared with Friday’s tally of 531.3 million. The value of shares traded during the day was Rs31.6 billion.

Shares of 390 companies were traded. Of these, 249 stocks closed higher, 122 fell, and 19 remained unchanged.

WorldCall Telecom was the volume leader trading in 57.07 million shares, gaining Rs0.03 to close at Rs1.57. It was followed by Fauji Cement with 41.9 million shares, gaining Rs1.21 to close at Rs20.07, and Oil & Gas Dev with 23.8 million shares, gaining Rs5.20 to close at Rs115.39.