Daily Times

Potential covid-19 vaccine boosted global stocks, picking major bourses globally. The trend was also reflected at KSe-100 index after it added 353 points to close at 34,158, crossing 34,000 mark.

The bullish trend was witnessed throughout the session as pharmaceuticals, exploration & production stocks picked attracted rally. Pharmaceuticals stocks showed strength on high hopes for a vaccine sales and production to treat coronavirus.

While, Exploration and production sectors showed promise as global oil prices continue to post gains following lifting of lockdown restrictions and revival of economic activity, which was grounded to halt after most of the countries imposed lockdown to mitigate Covid-19 spread. Oil prices are gaining strength amid signs that producers are cutting output as promised just as demand picks up, stoked by more countries easing out of curbs.

The Index remained positive throughout the session touching an intraday high of 34,350.54 in early trading hours , however it struck an intra day low of 33,804.97 as Profit-booking was witnessed towards the end, nevertheless, the KSE-100 index managed to close with gains.

Overall, trading volumes decreased to 248 million shares compared with Monday’s tally of 262 million. The value of shares traded during the day was Rs10.5 billion.

Among the volume leaders, oil and gas marketing companies registered the highest trading volume with 40 million shares, followed by technology firms with 35.3 million shares and cement producers 32.8 million shares. Among the scrips, Hascol Petroleum led the volume chart , followed by TRG Pakistan and Maple Leaf Cement with cumulative trading in 60 million shares.

Investors interest was attracted towards pharmaceuticals where  Searle Company Limited  gained 4.4%, Ferozsons Laboratories gained 0.8%, GlaxoSmithKline gained 3.6%, AGP Limited gained 7.5%, NetSol Technologies gained 7.5%, TRG Pakistan gained 2.7% and Avanceon Limited gained 4.3%.

Sectors that propped up the index were Oil & Gas Exploration Companies with 106 points, Pharmaceuticals with 52 points, Oil & Gas Marketing Companies with 40 points, Miscellaneous with 39 points and Commercial Banks with 24 points.

Among the companies, most points added to the index was by Oil &Gas Development Company Limited which contributed 60 points followed by Pakistan Petroleum Limited with 37 points, Pakistan Services Limited with 31 points, Sui Northern Gas Pipeline with 26 points and Dawood Hercules Corporation Limited with 22 points.

Sector wise, the index was let down by Cement with 15 points, Fertilizer with 7 points, Automobile Parts & Accessories with 6 points, Tobacco with 6 points and Modarabas with 2 points. Among the scrip, the most points taken off the index was by ENGRO which stripped the index of 13 points followed by  Meezan Bank Limitedwith 9 points, Pioneer Cement Limited  with 9 points, Cherat Cement Company Limited with 8 points and Adamjee Insurance Company Limited with 7 points.

Global Markets

Markets across the world showed mixed trends as winners and losers revolve around potential success of covid-19 vaccine and rising fears of recessions as Germany and Japan have already entered technical recessions.

European stocks halted positive trend set at the start of the week, and drove down major bourse CAC-40 in France and England’s FTSE-100 closed over 1% lower, while Germany’s DAX closed 0.46% lower.

However, investors were expecting the markets to rebound after Germany and France announced plans for a 500 billion euro EU coronavirus recovery fund. This money would then be used as grants for sectors and regions where the impact of the coronavirus has been most stark.

In Asia, Stocks gained steam on Tuesday as hopes rise on a potential coronavirus vaccine after a promising development from a Moderna trial. The moves came following overnight developments after Moderna reported “positive” phase one results for a potential coronavirus vaccine. The company said that after two doses all 45 trial participants had developed coronavirus antibodies.

South Korea’s Kospi surged 2.25% to close at 1,980.61, with shares of automaker Hyundai Motor skyrocketing 7.83%. In Japan, the Nikkei 225 ended its trading day 1.49% higher at 20,433.45 as shares of robot maker Fanuc soared 3.99%. Hong Kong’s Hang Seng index jumped 1.89%, as of their final hour of trade, with shares of HSBC soaring about 3.5%. In Chin stocks edged higher on the day, with the Shanghai composite up 0.81% to about 2,898.58.

In U.S Wall street witnessed a mixed trend, as  Dow Jones Industrial Average dipped on Tuesday after the market scored its best session in six weeks a day earlier on rising optimism about a coronavirus vaccine. The 30-stock Dow traded 114 points lower, or 0.5%. The S&P 500 slipped by 0.1%. The Nasdaq Composite outperformed, rising 0.6%. Tech heavy Nasdaq was lifted by Gains from Facebook, Apple and Amazon lifted. Facebook and Apple both rose more than 0.7%. Amazon shares traded 1.5% higher.