KARACHI: Pakistan Stock Exchange (PSX) opened the week in a positive mood as the benchmark KSE-100 Index gained 506.2 (1.13%) points. The main reason for this was the encouraging news from the political and macroeconomic front, but short roll-over week and an outstanding leverage amount of Rs 38.8 billion at the start of the week caused some jitters.
The Karachi Share Index (KSE-100) gained 506.02 points (1.13 per cent) after closing at 45,407.33 points against the previous closing of 44,901.31 points. The market went up 45,464.26 points during intra-day trading, while recorded as low as 44,735.58 points.
Trading volume increased to 440.9 million shares today as compared to 484.6 million traded in the previous session, according to PSX website data. The daily traded value increased to Rs 22.091 billion from Rs 21.832 billion in the previous session, the data said.
According to the analyst, the market went down earlier in the session by 165pts that saw across the board mild selling pressure. However, a reversal in energy chain stocks (E&P, Refinery, O&GMCs, Power) saw a rebound in the index with a total increase of 564 points. The anticipation of resolution of gas related circular debt helped the energy chain to recover primarily.
Despite a trading day after two holidays, investors seemed to be busy in selective buying in the banking, cement and energy sectors. The continuation in monetary policy also had a positive impact on business, traders and analysts said.
Furthermore, market sentiment was also supported by a “lack of disturbing news” on the local political front as the opposition seems to be busy settling issues within their ranks before making any move against the government.
Among major contributors, OGDC, PPL and HASCOL hit upper circuit during the session, whereas PSO, HUBC also contributed in positive trend. Similarly, Refinery sector stocks also performed well today. Among scrips, BYCO topped the volumes with 68.6 million shares, followed by PRL (40.8 million) and HASCOL (38.5 million).
Stocks that contributed positively to the index include OGDC (+111 points), PPL (+101 points), TRG (+44 points), PSO (+44 points) and HUBC (+41 points). Stocks that contributed negatively include AICL (-12pts), MCB (-11pts), BAFL (-10pts), PIOC (-10pts) and NBP (-10pts).