Market watch: KSE-100 extends gains, ends just shy of 40,000

Benchmark index rises 613.17 points to settle at 39,871.61


Our Correspondent August 03, 2020
Trading volumes increased to 539.3 million shares compared with Thursday’s tally of 368.7 million. PHOTO: FILE

KARACHI:

Pakistan stock market extended its gains for the sixth successive session on Monday as it soared over 600 points amid significantly higher trading volumes.

The rally came on the back of declining coronavirus cases and investor interest in cement and banking stocks.

The KSE-100 index shot up from the moment trading began as high volumes pushed the index near the 40,000-point mark. Investors cheered the dip in Covid-19 infections in the country, which heralded the end of the lockdown.

On the other hand, news about projects in the housing sector also acted as a catalyst and spurred interest in cement stocks.

At close, the benchmark KSE-100 index recorded an increase of 613.17 points, or 1.56%, to settle at 39,871.61 points.

Arif Habib Limited, in its report, stated the index recorded the highest traded value of Rs26 billion, which was last seen in 2017.

“While exploration and production stocks faced selling pressure, cement and banking sectors took the lead and carried the momentum. The release of inflation data caused some selling pressure, however, the reading improved prospects for banking sector stocks, which were trading at relatively low levels compared with the manufacturing sector stocks.”

Volumes increased 46% day-on-day to 539.3 million shares while average traded value rose 51% to $154.2 million.

“Stocks that contributed positively to the index included HBL (+83 points), Lucky Cement (+54 points), TRG Pakistan (+35 points), Engro (+29 points) and UBL (+25 points). Stocks that contributed negatively were Mari Petroleum (-14 points), Pakistan Petroleum Limited (-13 points), Pakistan Oilfields (-6 points), OGDC (-5 points) and Meezan Bank (-5 points).”

Overall, trading volumes increased to 539.3 million shares compared with Thursday’s tally of 368.7 million. The value of shares traded during the day was Rs25.8 billion.

Shares of 412 companies were traded. At the end of the day, 286 stocks closed higher, 110 declined and 16 remained unchanged.

Maple Leaf Cement was the volume leader with 34.9 million shares, gaining Rs1.33 to close at Rs33.78. It was followed by Power Cement with 32.6 million shares, gaining Re1 to close at Rs8.20 and TRG Pakistan with 29.9 million shares, gaining Rs3.39 to close at Rs50.89.

Foreign institutional investors were net buyers of Rs156.8 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.

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