close
Advertisement
Can't connect right now! retry

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!

Stocks extend stellar run as renewed optimism triggers bargain hunting

Business

May 24, 2019

Stocks on Thursday took another big leap towards recovery with volumes hitting a 39-session high, as tempting valuations triggered a buying binge on hopes the worst is likely over especially after uncertainties regarding rupee movement and interest somewhat dispersed, dealers said.

Topline Securities in its market review said equities continued their positive trajectory for the fourth consecutive session, cumulatively gaining 2,414pts or 7.13 percent, while in last two sessions it grew 6.3 percent, highest in a decade.

“The positive sentiments were mainly driven by approval of oil deferred payment facility from Saudi Arabia and likely creation of Pakistan Stock Exchange support fund,” the brokerage said.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index gained 2.73 percent or 944.20 points to close at 35,581.34 points, whereas KSE-30 followed grew by 3.04 percent or 502.30 points to end at 17,014.51 points.

Of 359 active scrips, 267 moved up, 75 retreated, and 17 remained unchanged. The ready market volumes stood at 227.706 million shares, as compared with the turnover of 203.498 million shares in the previous session.

Faisal Shaji, strategist at Standard Capital, said, the market was boosted by Dr Hafeez Sheikh's backing whilst stiff measures at the behest of IMF have been factored in the index; however, lot of confidence building measures needed to restore investor confidence. "There is also a rumour of ending capital gains on individual trades in coming budget which is propelling the market,” Shaji said.

Salman Ahmad, head of institutional sales at Aba Ali Habib Securities, said that the valuations became quite attractive during the recent prolonged bearish spell wiping out almost 10,000 points since August 2018.

Samiullah Tariq director research at Arif Habib Securities said the market has increased by 6.4 percent during past two trading days, which in terms of points, was the largest increase ever during two consecutive trading sessions.

“In terms of percentage increase, 6.4 percent is a ten year high after April 13, 2009 when the market increased by 7.9 percent during two consecutive days,” Samiullah said.

Moreover, mist is clearing on part of interest rate and rupee fluctuation. Rupee gained which has been a positive portent and things are settling which might attract some fresh buying from local as well as foreign fund houses.

Furthermore, Fitch Solutions has forecast no more interest rate hike in during the year as it sees downward inflationary pressure after a recent hefty increase in the policy rate by the central bank that would put a floor under the tumbling rupee.

Commercial banks were the best performing sector today as it added 247 points to the index. It was followed by Fertilizer and E&Ps which cumulatively added 327 points.

The highest gainers were Bata Pakistan up Rs53.88 to close at Rs1,308.88/share, and Mari Petroleum, up Rs51.70 to finish at Rs1085.72/share.

Companies that booked highest losses were Nestle Pakistan, down Rs193.84 to close at Rs6845.01/share, and Mitchell's Fruit Farms, down Rs13.90 to close at Rs264.10/share.

Bank of Punjab recorded the highest volumes with a turnover of 16.298 billion shares. The scrip gained Rs0.02 to close at Rs12.27/share.

The lowest volumes were witnessed in TRG Pakistan Limited, recording a turnover of 6.887 million shares, whereas the scrip gained Rs1 to end at Rs16.44/share.

Topstory minus plus

Opinion minus plus

Newspost minus plus

Editorial minus plus

National minus plus

World minus plus

Sports minus plus

Business minus plus

Karachi minus plus

Lahore minus plus

Islamabad minus plus

Peshawar minus plus