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!
August 7, 2020

Stocks close above 40,000 points amid record volume

Business

August 7, 2020

Stocks on Thursday hit an almost 5-month high with volume surging to nearly 3.5-year high on continued gold-rush in cement, oil, and fertilisers amid renewed institutional support, dealers said.

The KSE-100 index in March 2020 closed above 40,000 points level, this is the second time it cross this level owing to renewed interest from financial institutions, mutual funds, individuals and companies lifting the daily volume.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index gained 0.71 percent or 283.34 points to close at 40,166.12 points, and KSE-30 followed suit with a high of 0.73 percent or 126.85 points to end at 17,424.56 points level.

Ready volume clocked in at 826 million shares which is a 4-year high. Previously, the highest volume of 903 million shares was recorded on September 27, 2016.

Of 415 active scrips, 234 were up, 166 down, and 15 remained unchanged. The ready market volumes stood at 826.808 million shares, as compared with the turnover of 501.945 million shares in the previous session.

Analyst Ahsan Mehanti from Arif Habib Corporation said, “Stocks closed higher amid record trades led by second and third tier stocks”.

Oil and banking scrips outperformed on strong earnings outlook amid upbeat data on petroleum products’ sales surging by 3 percent YoY in July and reports of surging banking spreads, he added.

“Higher global crude oil prices, ECNEC approval for $6.8 billion ML-1 CPEC project impacting industrials, auto, and cement sector outlook played a catalyst role in bullish close,” Mehanti added.

Sateesh Balani, director research at Ismail Iqbal Securities, said, “The interest in cement stocks continued as the government is constituting special committees to prepare a programme on fast-track basis for construction of Gwadar Port and other development projects of Balochistan”.

“The government is working towards implementation of treasury single account which may dent sentiment for some of banking shares, dragging few of them to close in negative zone”, Balani added.

Topline Securities in a review said, “The market continued its positive momentum where cements lead the rally".

Meanwhile, higher international oil prices garnered investor interest, it added.

Topline said the TRG closed at its upper circuit as the grapevine suggested that IPO of its indirect subsidiary company IBEX Limited was in process on NASDAQ.

Zia Shafi, senior investment advisor at Intermarket Securities, said, “Before breaching 40,000 points’ level and settling above it to see downward correction or in phase of correction, the traders must be shy of long-term positions”.

The market was expected to see nominal correction, but it would be healthier for the market and ‘buy on dips’ was advised till any major trigger or development on the economic front, Shafi added.

Rafhan Maize, growing by Rs350 to close at Rs8,300/share, and Pakistan Tobacco, securing Rs44.99 to finish at Rs1656.00/share, were the major gainers of the day, while Mehmood Textile, down Rs40.15 to close at Rs495.30/share, and Sapphire Fibre, losing Rs30 to close at Rs756/share, were the main losers.

WorldCall Telecom led volumes with 242.817 million shares, gaining Rs0.42 to end at Rs1.43/share, whereas Fauji Cement posted the lowest turnover with 14.949 million shares, scoring Rs0.21 to end at Rs21.47/share.