Title: Market watch: Political clarity drives rally at bourse
Share:
Linkedin
Whatsapp
Facebook
Description:
Bulls returned to the Pakistan Stock Exchange on the final day of the week, pushing up the KSE-100 index by over 650 points as the market reacted positively to the Supreme Court’s verdict that crushed National Assembly deputy speaker’s ruling and reinstated the National Assembly.
Late on Thursday, the apex court released the much-awaited verdict, which somewhat eased political uncertainty and provided an opportunity to the stock market to post growth.
In addition, a surprise interest rate hike by the State Bank of Pakistan by 2.5 percentage points to 12.25% was brushed off by investors as they bought stocks without showing any concern.
Finally, investor sentiment was bolstered by the rupee that broke the prolonged declining streak and recovered nearly Rs4 against the US dollar.
Earlier, the Pakistan Stock Exchange kick-started the last trading session of the week with a spike and remained in the green zone throughout the day. Investors bought stocks that had fallen to attractive valuations in the past few days, propping up the market. Further stock buying in the final minutes inflated the gains.
At close, the benchmark KSE-100 index recorded a rise of 657.75 points, or 1.5%, to settle at 44,444.58 points.
A report of Arif Habib Limited stated that the Pakistan Stock Exchange witnessed a bullish momentum after the Supreme Court announced the much-awaited decision last night and created clarity.
“Moreover, appreciation of Pakistani rupee against the US dollar was a huge relief for investors,” it said. “In the first trading hour, a rally was witnessed in banking, exploration and production and refinery sectors.”
Steel sector remained under pressure due to the hike in interest rate. In the last trading hour, buying activity was observed across the board, it said.
JS Global analyst Neelam Naz said that bulls took charge on Friday as the benchmark KSE-100 index closed at 44,444, gaining 658 points day-on-day.
A total of 228 million shares were traded where Telecard Limited (+4.5%), Ghani Global Holdings (+6.7%), Treet Corp (+5.1%), Cnergyico (+2.2%) and TPL Properties (+6%) were the volume leaders.
“Commercial banks were in the limelight because of the rate hike announced by the State Bank in an emergency meeting,” she said. “Going forward, we recommend investors to book profits on the higher side.”
Overall trading volumes increased to 227.9 million shares compared with Thursday’s tally of 141 million. The value of shares traded during the day was Rs6.8 billion.
Shares of 325 companies were traded. At the end of the day, 235 stocks closed higher, 72 declined and 18 remained unchanged.
Telecard Limited was the volume leader with 19.7 million shares, gaining Rs0.65 to close at Rs15.10. It was followed by Ghani Global Holdings with 17.7 million shares, gaining Rs1.11 to close at Rs17.61 and Treet Corp with 16.9 million shares, gaining Rs1.67 to close at Rs34.18.
Foreign institutional investors were net sellers of Rs550.9 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.
Published Date: 08-Apr-2022
Share:
Linkedin
Whatsapp
Facebook