KARACHI: Buoyed by increasing oil prices, the KSE-100 Index snapped a four-day losing streak, increasing 1.24% to go beyond the 51,350 level on Monday.
At close, the Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index showed a rise of 631.48 points or 1.24% to end at 51,373.51.
According to a JS Research report, the market observed a bullish momentum throughout the day, with the initial impetus provided by the oil sector.
“Major positive contribution came from the oil sector, on the back of rising oil prices on global expectations of output cuts,” said analyst Nabeel Haroon.
“Pakistan Oilfields (+4.24%), Oil and Gas Development Company (+3.28%) and Pakistan Petroleum (+2.55%) from the sector contributed to sector gains.
“Banking sector heavyweights experienced a stock price hike as well, including United Bank (+3.92%), Habib Bank (+2.96%) and MCB Bank (+0.89%), that cumulatively contributed 225 points to the index.
“Lucky Cement (+0.53%) and DG Khan Cement (+1.72%) from the cement sector also recorded gains after witnessing profit-booking on the last trading day,” he added.
Meanwhile, Elixir Securities analyst Ali Raza said the equities bounced back on Monday after a four-day losing streak with notable names across major sectors managing gains, albeit on thin volumes.
“Initial push was provided by index-heavy oils as investors tracked higher global crude while names mainly led by MSCI EM constituents followed suit,” he said.
“Notably, volumes on the day were lowest since May 2 with small and mid-caps primarily leading as most participants await clarity on budgetary announcements while ongoing rollover week further pushed investors on the sidelines.
“Moreover, weekend monetary policy announcement with the State Bank of Pakistan maintaining the benchmark borrowing rate at 5.75% had no impact on the market,” he added.
Overall, trading volumes fell to 240 million shares compared with Friday’s tally of 345 million.
Shares of 394 companies were traded. At the end of the day, 239 stocks closed higher and 146 declined while nine remained unchanged. The value of shares traded during the day was Rs12.6 billion.
Silkbank was the volume leader with 16.75 million shares, losing Rs0.05 to close at Rs1.86. It was followed by Pervez Ahmed with 13.1 million shares, gaining Rs0.29 to close at Rs2.77 and WorldCall Telecom with 11.1 million shares, losing Rs0.06 to close at Rs3.39.
Foreign institutional investors were net buyers of Rs29 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.