KDollar inflow statement propels KSE-100 Index by 489 points

The Pakistan Stock Exchange seemingly took a new start as if the benchmark KSE-100 Index jumped by over 600 points on Tuesday with the market looking beyond the less-than-expected hike in policy rate reflected by a massive increase in trading volume.

By the time trading ended, the KSE-100 Index was recorded at 39.055.65 with an increase of 612.06 points, or 1.59 percent, against the previous level of 38,443.59.

Investors were mainly interested in the oil and gas sector with a particular focus on the state-owned enterprises like Oil & Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL), said Ali Nadeem – Head of Sales at the First National Equities Limited (FNEL).

The reason behind this is the expectation that the government would be able to attract some foreign investors to buy the shares of these entities according the plan which envisages using their dividends to solve the circular debt problem.

In this connection, there are reports that some progress has been made on this issue during Foreign Minister Ishaq’s visit to Qatar, as he is holding talks with the Qatari officials in Doha.

The official Twitter account of PML-N posted a tweet, saying Dar held a meeting with Qatar’s Minister of Energy Affairs Saad bin Sherida Al Kaabi, as both sides agreed to explore areas of cooperation in the energy sector.

However, this positivity, according to Ali, was a product of the fact that the State Bank of Pakistan’s Monetary Policy Committee had jacked up the interest rate by only 1 percent to 17 percent.

Earlier on Monday, Ali had said about the effects of the latest interest rate hike that there won’t be any negativity in the market which had already absorbed the losses as the 1 percent increase was expected. Things would have been different if there increase was 1.5 or 2 percent as feared by some circles.

On Tuesday, the overall market volume stood at 179.70 million shares, representing a huge increase of around 125 percent against the 81.26 million shares traded in the previous session.

A total of 326 stocks were traded during the day out which 225 made gains, 74 declined and 27 remained unchanged.

The market gains were mainly a product of the contributions from the sectors like oil and gas exploration and marketing, cement, technology and communication, and fertilizer.

When it comes to the KSE-100 Index, its volume was recorded at 51.40 million shares – a huge drop of around 40 percent against the previous day’s level of 92.58 million.

During the session, 86 stocks were on offer for trading out of which the share prices of 65 were up, 17 down, and four did not see any change.

Pakistan Petroleum with 13.16 million shares again the topped the list of volume leaders on the KSE-100 Index. It was followed by Maple Leaf Cement 12.49 million, Oil & Gas Development Company 7.62 million, TRG 7.16 million, and CNERGY 6.84 million.

As far as the advancers are concerned, the share price of Pak Gulf Leasing was up by 14.51 percent followed by Pioneer Cement 7.55 percent, Kohat Cement 7.50 percent, International Steel 7.49 percent, and Mughal Iron & Steel 7.40 percent.

But when comes of those witnessing a decline in their share prices, the worst performers included Standard Chartered Bank 4.20 percent, Gul Ahmed Textile 3.50 percent, Fatima Fertilizer 2.22 percent, AGP 1.28 percent, and Adamjee Insurance 1.01 percent.

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