Market watch: KSE-100 skyrockets past 45,000 point barrier

Benchmark index soars 1,215.89 points to settle at 45,330.05


Our Correspondent November 29, 2021
Shares of 429 companies were traded. At the end of the day, 312 stocks closed higher. PHOTO: FILE

KARACHI:

The Pakistan Stock Exchange skyrocketed on Monday as the benchmark KSE-100 index soared by a substantial 1,216 points to surge past the 45,000 point level on the back of stabilisation in global markets.

Threated by discovery of Covid-19 Omicron variant, the global markets endured a battering and slid.

Bulls dominated the market throughout the day as investors cheered anticipated receipt of $4.2 billion support package from Saudi Arabia this week.

Moreover, decline in international fuel prices on Friday also contributed towards overall optimism in the market as it sparked hopes of normalisation of oil prices in the local market.

Depreciation of rupee to an all-time low value against the US dollar failed to impact the bourse and across the board buying activity was experienced.

Trading began on a volatile note however the market climbed as participants cherry picked stocks that had fallen to attractive valuations on the back of the bear run last week. Strong investor sentiments helped the index rise at a steady pace throughout the day and helped it close with gains.

At close, the benchmark KSE-100 index recorded an increase of 1,215.89 points, or 2.76%, to settle at 45,330.05.

Talking to The Express Tribune, Arif Habib Commodities Managing Director and CEO Ahsan Mehanti said that the KSE-100 index witnessed a record surge on Monday.

Highlighting the main reasons behind the rally, he underlined that the investors’ confidence received a major boost following the approval of the terms of Saudi Arabia’s $4.2 billion support package by the federal cabinet, which made it evident that Pakistan would receive the aid this week.

Moreover, the increase in international oil prices acted as a cherry on top for the market participants to remain cheerful, he said.

He was of the view that the benchmark KSE-100 index would not have posted this record surge, had international oil prices not rebounded – contradicting the market expectations.

He added that investors were expecting the global oil prices to remain low or unchanged, but the sudden rebound instilled optimism in the market.

A report of Arif Habib Limited stated that the KSE-100 index witnessed a bull-run as it gained more than 1,200 points in intra-day trading to cross 45,000 points.

The index was lifted by the cabinet approval to revive Saudi Arabia’s $3 billion support package for Pakistan in safe deposits and $1.2 billion worth of oil supplies on deferred payments.

Major dip in crude oil prices created positive momentum in the market despite the emergence of a new variant of Covid-19.

The perception of investors towards the last leg of foreign selling spree being completed last week created opportunity for intra-day traders.

Sectors contributed to the performance include commercial banks (+283 points), cement (+211 points), exploration and production (+139 points), fertiliser (+100 points) and oil marketing companies (+76 points).

Overall trading volumes decreased to 268.24 million shares compared with Friday’s tally of 289.85 million. The value of shares traded during the day was Rs10.9 billion.

Shares of 358 companies were traded. At the end of the day, 263 stocks closed higher, 76 declined and 19 remained unchanged.

Fauji Foods (R) was the volume leader with 14.85 million shares, losing Rs0.31 to close at Rs0.82. It was followed by TPL Properties XB with 14.74 million shares, gaining Rs2.57 to close at Rs45.8 and WorldCall Telecom with 13.69 million shares, gaining Rs0.01 to close at Rs2.12.

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