Market watch: KSE-100 continues upward ride, crosses 31,000 points
Benchmark index rises 2.73% to settle at 31,621.79
Benchmark index rises 2.73% to settle at 31,621.79. PHOTO: AFP
KARACHI:
The KSE-100 continued to gain momentum on Friday as index-heavy stocks pushed the benchmark well above 31,000 points with a rise of over 800 points.
The rally marked the third consecutive session in the green despite growing COVID-19 cases in the country and overseas.
Moreover, the prime minister’s assurance to the construction sector for an economic relief package coupled with Moody’s rating agency’s upbeat statement about measures taken by the State Bank of Pakistan to cut the key policy rate and cushion banks’ asset quality and lending business sparked institutional interest.
At close, the benchmark KSE-100 index recorded an increase of 839.12 points, or 2.73%, to settle at 31,621.79.
Arif Habib Limited, in its report, stated that the market opened with a strong gain of 480 points with traded volume of 5.1 million shares at the opening bell.
“Overnight, the skyrocketing prices of crude oil (which saw a jump of 35%) kept sentiment strong and elevated, although crude prices started correcting in the early hours of Friday,” it said.
“Positive vibes about the construction package also resulted in boisterous activity at the bourse, leading investors to buy cement and steel stocks at and near their upper circuits,” it said.
As the exploration and production stocks hit their upper locks, the recently launched exchange-traded funds (ETFs) were apparently forced to fill the basket with available stocks (ie blue-chip banks) that also added buying pressure to the benchmark index. Resultantly, the KSE-100 climbed 1,034 points during the session and closed with a rise of 839 points.
Stocks that contributed significantly to the volumes included Maple Leaf Cement, Hascol Petroleum, The Bank of Punjab, Unity Foods and K-Electric, which accounted for 32% of total volumes.
Stocks that contributed positively to the index were Hubco (+115 points), OGDC (+88 points), Pakistan Petroleum Limited (+83 points), UBL (+63 points) and Pakistan Oilfields Limited (+58 points).
Meanwhile, stocks that contributed negatively included MCB (-39 points), Habib Metropolitan Bank (-17 points), Dawood Hercules (-11 points), Systems Limited (-10 points) and Engro (-9 points).
Overall, trading volumes decreased to 251.9 million shares compared with Thursday’s tally of 311.6 million. The value of shares traded during the day was Rs9.3 billion.
Shares of 340 companies were traded. At the end of the day, 233 stocks closed higher, 91 declined and 16 remained unchanged.
Maple Leaf Cement was the volume leader with 26.3 million shares, gaining Rs1.36 to close at Rs24.01. It was followed by Hascol Petroleum with 15.9 million shares, gaining Re1 to close at Rs13.78 and The Bank of Punjab XD with 13.9 million shares, gaining Rs0.31 to close at Rs8.25.
The KSE-100 continued to gain momentum on Friday as index-heavy stocks pushed the benchmark well above 31,000 points with a rise of over 800 points.
The rally marked the third consecutive session in the green despite growing COVID-19 cases in the country and overseas.
Moreover, the prime minister’s assurance to the construction sector for an economic relief package coupled with Moody’s rating agency’s upbeat statement about measures taken by the State Bank of Pakistan to cut the key policy rate and cushion banks’ asset quality and lending business sparked institutional interest.
At close, the benchmark KSE-100 index recorded an increase of 839.12 points, or 2.73%, to settle at 31,621.79.
Arif Habib Limited, in its report, stated that the market opened with a strong gain of 480 points with traded volume of 5.1 million shares at the opening bell.
“Overnight, the skyrocketing prices of crude oil (which saw a jump of 35%) kept sentiment strong and elevated, although crude prices started correcting in the early hours of Friday,” it said.
“Positive vibes about the construction package also resulted in boisterous activity at the bourse, leading investors to buy cement and steel stocks at and near their upper circuits,” it said.
As the exploration and production stocks hit their upper locks, the recently launched exchange-traded funds (ETFs) were apparently forced to fill the basket with available stocks (ie blue-chip banks) that also added buying pressure to the benchmark index. Resultantly, the KSE-100 climbed 1,034 points during the session and closed with a rise of 839 points.
Stocks that contributed significantly to the volumes included Maple Leaf Cement, Hascol Petroleum, The Bank of Punjab, Unity Foods and K-Electric, which accounted for 32% of total volumes.
Stocks that contributed positively to the index were Hubco (+115 points), OGDC (+88 points), Pakistan Petroleum Limited (+83 points), UBL (+63 points) and Pakistan Oilfields Limited (+58 points).
Meanwhile, stocks that contributed negatively included MCB (-39 points), Habib Metropolitan Bank (-17 points), Dawood Hercules (-11 points), Systems Limited (-10 points) and Engro (-9 points).
Overall, trading volumes decreased to 251.9 million shares compared with Thursday’s tally of 311.6 million. The value of shares traded during the day was Rs9.3 billion.
Shares of 340 companies were traded. At the end of the day, 233 stocks closed higher, 91 declined and 16 remained unchanged.
Maple Leaf Cement was the volume leader with 26.3 million shares, gaining Rs1.36 to close at Rs24.01. It was followed by Hascol Petroleum with 15.9 million shares, gaining Re1 to close at Rs13.78 and The Bank of Punjab XD with 13.9 million shares, gaining Rs0.31 to close at Rs8.25.