The Pakistan Stock Exchange (PSX) marked a historic day on Wednesday as trading volumes shot to an all-time high of 1.56 billion shares.
The market saw a bullish trend coupled with across-the-board trading, which helped the index climb over 500 points.
Government’s promise of a pro-people and growth-oriented budget for the upcoming fiscal year, coupled with prospects of a V-shaped economic recovery, boosted investor morale.
In addition, market participants pinned hopes on maintaining the status quo in monetary policy announcement on Friday. Investors also took cue from provisional FY21 economic growth of 3.94%, which indicated a healthy economic recovery.
Despite the overall optimism, cement sector stocks suffered losses and major names closed in the red.
Earlier, trading began on a positive note and the KSE-100 index remained in the green throughout the session. After initial spike, the trading, however, remained range bound for the rest of the day. A buying spree emerging towards the end helped elevate the gains.
At close, the benchmark KSE-100 index recorded an increase of 511.65 points, or 1.11%, to settle at 46,812.31.
In its report, Arif Habib Limited stated that a historic day was witnessed at the Pakistan Stock Exchange, which registered the highest-ever trading volumes of 1.56 billion shares, courtesy WorldCall Telecom which had trading volumes of 707.7 million shares.
Though exploration and production and banking stocks helped the index maintain the momentum, major support came from technology and telecommunication sectors where stocks of IT and media companies aided investor sentiment.
WorldCall Telecom, Hum Network, Media Times, PTCL, Telecard, Avanceon Limited and Unity Foods were in the limelight, the report said.
JS Global analyst Neelum Naz said that bulls took complete control of the market, pushing it beyond the 46,800 mark.
The market registered all-time high volumes of 1.6 billion shares and closed at 46,812, with an increase of 511 points during the session, she said.
While Hum Network (+14.7%), Unity Foods (+3.5%), Byco Petroleum (+1.4%) and PIA (+22.1%) enjoyed heavy activity, WorldCall Telecom (+41.2%) led the volumes chart, contributing 45% to the total volumes.
In terms of sectors, technology, fertiliser and steel remained particularly active.
“The market managed to close above 46,800 with such high volumes and we believe this bullish momentum can continue in the coming days,” she said.
“Any dip should be viewed as a buying opportunity for banking, cement, steel and technology sector stocks.”
Overall trading volumes surged to 1.56 billion shares compared with Tuesday’s tally of 677.4 million. The value of shares traded during the day was Rs28.3 billion.
Shares of 423 companies were traded. At the end of the day, 284 stocks closed higher, 125 declined and 14 remained unchanged.
WorldCall Telecom was the volume leader with 707.7 million shares, gaining Rs0.94 to close at Rs3.22. It was followed by Hum Network with 112.5 million shares, gaining Re1 to close at Rs7.81 and Unity Foods with 45.1 million shares, gaining Rs1.54 to close at Rs45.22.
Foreign institutional investors were net sellers of Rs485.5 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.