KARACHI:
The Pakistan Stock Exchange maintained its uptrend on Tuesday with an increase of 204 points in the KSE-100 index as investors were optimistic that the country would end the ongoing fiscal year with a current account surplus.
Despite a contraction of $200 million in the current account surplus in April 2021, as reported by the State Bank of Pakistan during the trading session, investors remained undeterred and took fresh positions at the bourse.
Heavyweight fertiliser and financial sectors attracted modest interest from market participants and ended the session with gains.
A spike in steel and cement prices sparked investor interest in the two sectors, which generated substantial buying activity.
Earlier, trading began on a positive note and the index climbed in early hours. Although the market saw range bound trading from midday onwards, strong investor sentiment aided the index to close the session in the green.
At close, the benchmark KSE-100 index recorded an increase of 203.55 points, or 0.44%, to settle at 46,300.66.
Arif Habib Limited, in its report, stated that the market remained positive, adding a total of 272 points during the day and closing up by 204 points.
Oil and gas marketing companies came under selling pressure on news of cancellation of operating licences and a probe by the government, whereas the exploration and production sector responded positively to the increase in international crude oil prices.
The cement sector performed well on expectation of increase in cement prices per bag.
Technology sector stocks led the index with a strong price performance across the board, particularly by NetSol, WorldCall Telecom and Systems Limited, the report said.
JS Global analyst Neelum Naz said that the KSE-100 maintained its bullish momentum throughout the day and closed with a gain of 204 points at 46,301 after touching a high of 46,369.
Total traded volume was recorded at 677 million shares. Honda Atlas Cars (-1.3%) from the automobile sector declared a cash payout of Rs4.52 per share and earnings per share (EPS) of Rs12.56 for the full year against EPS of Rs4.77 in the previous year.
The market finally closed above the 46,300 level after a long time, which was a positive sign.
“The bullish momentum can continue in the coming days and investors are advised to view any dip as a buying opportunity in the banking and cement sector stocks trading at a discount,” the analyst said.
Overall trading volumes dipped to 677.4 million shares compared with Monday’s tally of 766.6 million. The value of shares traded during the day was Rs23.5 billion.
Shares of 418 companies were traded. At the end of the day, 232 stocks closed higher, 169 declined and 17 remained unchanged.
WorldCall Telecom was the volume leader with 150.3 million shares, gaining Rs0.14 to close at Rs2.28. It was followed by Unity Foods with 66.8 million shares, gaining Rs2.42 to close at Rs43.68 and Telecard Limited with 37.7 million shares, gaining Rs1.22 to close at Rs17.53.
Foreign institutional investors were net buyers of Rs128.8 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.
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