Market watch: Stocks bounce back in green as tensions ease
Benchmark index increases 608.23 points to settle at 41,904.47
Benchmark index increases 608.23 points to settle at 41,904.47. PHOTO: AFP
KARACHI:
In a welcome turn of events, stocks bounced back after the battering endured in the preceding session as strong economic data helped turn the tide.
The KSE-100 opened on a positive note and continued to trade in the green as the positive trade data acted as a catalyst in boosting investor sentiments. Robust recovery in global equities on easing reaction to the US-Iran tensions also helped improve matters at the bourse.
Relief in global markets despite the conflict was seen on back of improving investors' optimism as most expected that Iran is less likely to launch retaliatory attacks against the US in a way that could disrupt crude oil supplies from the Middle East. On the domestic front, political unity that helped the smooth sailing of Army (Amendment) Bill 2020 also supported the index rally.
At close, the benchmark KSE 100-share Index recorded an increase of 608.23 points, or 1.47%, to settle at 41,904.47.
JS Global analyst Maaz Mulla said that bears were defeated as the market witnessed recovery.
"The benchmark index opened positive and touched a high of 672 points as institutional participation was witnessed mainly in the main board stocks."
Positive sentiments in the market can be attributed to attractive valuations of the KSE-100 index stocks. Buying was largely driven by value hunters with heavyweights such as HBL (+3.5%), LUCK (+4.7%), DAWH (+5.0%), PSO (+4.7%), ENGRO (+1.7%), HUBC (+1.7%) and BAHL (+2.3%) leading the charts.
"Moving ahead, we expect the market to remain positive in the medium term. However, profit taking cannot be ruled out in the short-term," he added.
"Sector-wise, commercial banking sector remained one of the actively traded sector throughout the session. Among major banks, HBL gained PKR 5.70 in its share value followed by MCB (+PKR 2.45), UBL (+PKR 2.19), BAHL (+PKR 1.85) and MEBL (+PKR 0.79)," according to an Aba Ali Habib report.
Overall, trading volumes fell to 206.9 million shares compared with Monday's tally of 266.6 million. The value of shares traded during the day was Rs9.2 billion.
Shares of 365 companies were traded. At the end of the day, 251 stocks closed higher, 93 declined and 15 remained unchanged.
Hascol Petroleum was the volume leader with 19 million shares, losing Rs0.40 to close at Rs27.12. It was followed by K-Electric Limited with 16.1 million shares, gaining Rs0.05 to close at Rs4.58 and Siddiqsons Tin Plate with 12.3 million shares, losing Rs0.57 to close at Rs10.12.
Foreign institutional investors were net buyers of Rs569.8 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.
In a welcome turn of events, stocks bounced back after the battering endured in the preceding session as strong economic data helped turn the tide.
The KSE-100 opened on a positive note and continued to trade in the green as the positive trade data acted as a catalyst in boosting investor sentiments. Robust recovery in global equities on easing reaction to the US-Iran tensions also helped improve matters at the bourse.
Relief in global markets despite the conflict was seen on back of improving investors' optimism as most expected that Iran is less likely to launch retaliatory attacks against the US in a way that could disrupt crude oil supplies from the Middle East. On the domestic front, political unity that helped the smooth sailing of Army (Amendment) Bill 2020 also supported the index rally.
At close, the benchmark KSE 100-share Index recorded an increase of 608.23 points, or 1.47%, to settle at 41,904.47.
JS Global analyst Maaz Mulla said that bears were defeated as the market witnessed recovery.
"The benchmark index opened positive and touched a high of 672 points as institutional participation was witnessed mainly in the main board stocks."
Positive sentiments in the market can be attributed to attractive valuations of the KSE-100 index stocks. Buying was largely driven by value hunters with heavyweights such as HBL (+3.5%), LUCK (+4.7%), DAWH (+5.0%), PSO (+4.7%), ENGRO (+1.7%), HUBC (+1.7%) and BAHL (+2.3%) leading the charts.
"Moving ahead, we expect the market to remain positive in the medium term. However, profit taking cannot be ruled out in the short-term," he added.
"Sector-wise, commercial banking sector remained one of the actively traded sector throughout the session. Among major banks, HBL gained PKR 5.70 in its share value followed by MCB (+PKR 2.45), UBL (+PKR 2.19), BAHL (+PKR 1.85) and MEBL (+PKR 0.79)," according to an Aba Ali Habib report.
Overall, trading volumes fell to 206.9 million shares compared with Monday's tally of 266.6 million. The value of shares traded during the day was Rs9.2 billion.
Shares of 365 companies were traded. At the end of the day, 251 stocks closed higher, 93 declined and 15 remained unchanged.
Hascol Petroleum was the volume leader with 19 million shares, losing Rs0.40 to close at Rs27.12. It was followed by K-Electric Limited with 16.1 million shares, gaining Rs0.05 to close at Rs4.58 and Siddiqsons Tin Plate with 12.3 million shares, losing Rs0.57 to close at Rs10.12.
Foreign institutional investors were net buyers of Rs569.8 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.