Market watch: PSX surges by record 1,700 points

As political dust settles, benchmark KSE-100 index gains 3.8% to close at 46,144.96

KARACHI:

With the settlement of the prolonged political row, the Pakistan Stock Exchange skyrocketed on Monday, as investors were observed celebrating the clarity on the political front stemming from the no-confidence vote against prime minister Imran Khan.

The benchmark KSE-100 index posted the highest-ever single-day gain of 1,700 points to settle above the psychological barrier of 46,000.

Bulls were seen maintaining their hold throughout the day, as the index remained in the green zone and recorded massive buying across the board.

A fresh appreciation of the rupee against the US dollar also instilled optimism among market players, who opted to take fresh positions at attractive stock valuations.

Earlier, the trading session commenced with a big rally when the index touched 45,800 points during initial hours. Moving forward, the index stayed around that level and kept itself in the positive territory throughout the day.

The index hit an intra-day high of 46,215 points in the final hour of trading and closed the day with record single-day gains.

At close, the benchmark KSE-100 index recorded a surge of 1,700.38 points, or 3.83%, to settle at 46,144.96 points.

The Pakistan Stock Exchange made a historic record and scored the highest-ever single-day gain, remarked Alpha Beta Core CEO Khurram Schehzad.

The benchmark KSE-100 index broke the previous record of 1,566 points achieved on June 5, 2017, he pointed out.

“Pakistan stocks made new history, where the benchmark KSE-100 index posted a historic single-day gain in terms of index points,” Topline Securities CEO Mohammed Sohail said, adding that the index gained 1,700 points to close at 46,145, “which is a new record in the history of Pakistan”.

Topline Securities, in its report, said “the rally is attributed to the change in political setup in the country over the weekend, where PM Imran Khan stepped down as a result of a successful no-confidence vote against him”.

During the trading hours, bullish sentiment hit the roof as massive buying was seen across the board with investors celebrating some improvement in the highly uncertain political environment over the last few days, it said.

Technology, cement, bank and power-sector stocks contributed positively to the benchmark index, where Systems Limited, Lucky Cement, TRG Pakistan, Habib Bank Limited and Hub Power Company added a cumulative 425 points.

On the flip side, Indus Motor Company, First Habib Modaraba and Allied Bank Limited saw some profit-taking, Topline said.

A report of Arif Habib Limited stated that bullish momentum was witnessed due to political clarity and appreciation of the Pakistani rupee against the US dollar.

“The market celebrated the long-awaited clarity as the KSE-100 index posted a historic single-day gain in terms of index points,” it said.

“Across-the-board rally was witnessed. Main board activity remained healthy. Moreover, the market even witnessed hefty volumes in third-tier stocks.”

Sectors contributing to the performance included banks (+385.4 points), cement (+228.5 points), technology (+199.3 points), fertiliser (+129.8 points) and exploration and production (+117.1 points).

JS Global analyst Neelam Naz said that the KSE-100 index saw a buoyant session, closing above the psychological barrier of 46,000 amid political clarity over the weekend.

WorldCall Telecom (+23%), Cnergyico PK (+15%), Fauji Cement (+4.4%), Hum Network (+9.1%) and Pakistan International Bulk Terminal (+17%) were the highest contributors to the volumes, she said.

More than 25 stocks hit their upper circuit during the day, where Lucky Cement, Hubco, HBL, Meezan Bank and TRG Pakistan contributed almost 387 points to the index.

The Pakistani rupee also gained against the US dollar and touched 183.3 in the inter-bank market, she said.

“Going forward, we recommend investors to book profits on the higher side as the market approaches 46,500 to 47,000 points,” the analyst said.

Overall trading volumes rose to 557.7 million shares compared with Friday’s tally of 227.9 million. The value of shares traded during the day was Rs13.4 billion.

Shares of 386 companies were traded. At the end of the day, 330 stocks closed higher, 45 declined and 11 remained unchanged.

WorldCall Telecom was the volume leader with 140.8 million shares, gaining Rs0.4 to close at Rs2.13. It was followed by Cnergyico PK with 40.1 million shares, gaining Rs0.8 to close at Rs6 and Fauji Cement with 18.2 million shares, gaining Rs0.76 to close at Rs17.86.

Foreign institutional investors were net buyers of Rs261.7 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.