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Thursday March 28, 2024

PSX builds on record-setting rally; index gains 1.6pc

By Our Correspondent
January 11, 2020

Stocks closed near 2 percent higher on Friday for the second consecutive day, lifted by shares in financial and energy firms on investors’ optimism about economic growth, dealers said.

They added that the benchmark index crossed 43,000 points level after almost 17 months on active participation from foreign fund houses in government securities.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index gained 1.61 percent or 683.98 points to close at 43,207.05 points level.

KSE-30 shares index followed suit with a high of 1.88 percent or 368.82 points to end at 20,028.20 points level.

Of 369 active scrips, 235 up, 116 retreated, and 18 remained unchanged.

The ready market volumes stood at 400.084 million shares, as compared with the turnover of 362.490 million shares in the previous session.

Analyst Ahsan Mehanti of Arif Habib Corporations said stocks closed “record bullish amid high trades led by scrips across the board”.

“Foreign inflows, rupee stability and world bank report acknowledging ongoing macroeconomic stabilization efforts played catalytic role in bullish close in the earnings seasons rally,” Mehanti added.

Last time the index hovered around 43,000 mark levels on July 30, 2018, reflecting strong sentiments shown by the local as well as foreign fund houses. Foreign investment in government securities such as treasury bills and Pakistan Investment Bonds from July to-date reached to 1.6 billion dollars.

Shahab Farooq, director research at Next Capital Securities said that the geo-political unrest earlier this week disrupted the positive momentum in the market earlier in the week.

“However, as the noise settled, the market regained its momentum and overall market liquidity is also improving,” farooq said.

Analysts said the market recently witnessed knee jerk reaction on middle east crisis “but as the US-Iran was hysteria eases, investors flocked to capital market”.

They said inflows are likely to continue owing to stabilisation in currency and external position.

“The current account deficit, main thorn in the country’s economy, has now been under control with new figures to arrive soon and foreign exchange reserves showing resilience outlook appears to be quite positive,” an analyst said.

Dealers said an increase in crude oil prices helped boost oil and gas companies at the local stock market.

Moreover, the index recorded gain on expectation that the equity market has been cheaper compared to all regional markets to lure foreign investment.

Dealers said sector specific rally witnessed with heavy volume, which indicates “the rally at the bourse to stay for longer period”.

Textile sector performed well on exports which showed growth in the six months of the current fiscal year.

The highest gainers were Bhanero Textile, up Rs35.00 close at Rs920.00/share, and ICI Pakistan, Rs30.42 to finish at Rs702.24/share.

Companies that booked highest losses were Indus Dyeing, down Rs33.45 to close at Rs635.55/share, and Bata Pakistan own Rs29.00 to close at Rs1950.00/share.

BOP recorded the highest volumes with a turnover of 52.475 billion shares. Whereas the scrip gained Rs0.76 end at Rs13.33/share. The lowest volumes were witnessed in Hascol Petrol recording a turnover of 10.761 billion shares, whereas the scrip lost Rs0.96 to end at Rs26.87/share.