Daily Times

Bulls returned to the Kse-100 index on Tuesday, with index recovering all the previous losses and gained 644.39 points to close at 40,559.15 points. The index traded above the psychological level of 40,000 mark and also touched an intraday high of 40,706 points.

After recording losses in the previous sessions due to correction, the index made a comeback following the news of potential resolution of circular debt by Government which kept energy chain stocks in the lime light, recording fresh rally in Exploration & Production , Independent power producers and Oil Marketing Companies throughout the session. Tuesday’s recovery added 1.62% to the index taking total market return to nearly 16% since the beginning of the fiscal year 2021.

The benchmark KSE-100 Index remained in the green zone throughout the day, registering its intraday at 40,706.08 after accumulating 791.32 points.  The index volume advanced from 289.98 million shares in the previous session to 401.60 million shares, while the overall market volumes also jumped from 576.55 million shares in the previous session to 600 million shares.

During the session, foreign investors led the investment chart, and remained net buyers of worth $3.8 million of shares, followed by Mutual Funds which were net buyers of $2.8 million worth of equities and Brokers with $2.4 million worth of equities. While, individuals and companies were the net sellers, with former selling $1.5 million worth of equities and later selling $1.7 million worth of equities.

The volume chart was led by Hascol Petroleum Limited followed by K-Electric Ltd and TRG Pakistan Limited. The scrips exchanged 65.45 million, 36.02 million and 31.21 million shares, respectively.

Sectors which lifted the index included Power Generation & Distribution with 168 points, Oil & Gas Exploration Companies with 142 points, Commercial Banks with 106 points, Cement with 84 points and Oil & Gas Marketing Companies with 63 points. Among the scrips, the most points added to the index was by Hub Power Company Limited which contributed 133 points followed by Pakistan Petroleum Limited  with 74 points, Lucky Cement limited with 44 points, United Bank Limited with 41 points and Oil & Gas Development Company Limited with 40 points.

Sectors which continue to add pressure and dented the index included Automobile Assembler with 30 points, Technology & Communication with 17 points, Leather & Tanneries with 3 points, Paper & Board with 3 points and Cable & Electrical Goods with 2 points. Among the srips, the most points taken off the index was by TRG Pakistan Limited which stripped the index of 19 points followed by Bank Al Habib Limited with 15 points, Millat Tractors Limited with 10 points, Indus Motors Limited with 9 points and Honda Atlas Cars (Pakistan) Limited  with 7 points.

Global markets

Global stocks were mixed over rising concerns over escalating Sino-U.S tensions following U.S President Donald Trump’s executive orders to ban Chinese apps TikTok and WeChat. Which was followed by a tit for tat reaction by china after reports said it had imposed sanctions on 11 U.S. citizens that included Senators Ted Cruz, Marco Rubio, Tom Cotton, Josh Hawley and Pat Toomey. However, investors seemed unfazed about the tensions and they consolidated gains after U.S stimulus hopes which boosted stocks. Amidst stalled negations and failure of U.S congressional leaders to make progress on a new stimulus package last week, U.S President Donald Trump signed an executive order to address covid-19 crisis and economic crunch. The move came after several benefits from a package signed earlier in the year lapsed at the end of July, raising uncertainty over recovery of U.S. economy.

Meanwhile, Investors’ sentiments were also lifted following the reports that the Russian President Vladimir Putin claimed the country had given regulatory approval for the world’s first Covid-19 vaccine. The vaccine will shed any fears of second wave of covid-19 and its concomitant fallout on the economy.

In Asia, investors treaded cautiously over rising Sino-U.S tensions, as stocks traded mixed. The Hong Kong’s Hang Seng index led the regional gains and closed 2.11% higher, but the new technology index slid 1.01%. Japan’s Nikkei 225 also advanced 1.88% to 22,750.24, while South Korea’s Kospi index gained 1.35% to 2,418.67. However, Chinese stocks dented the overall trend, and posted losses with benchmark index Shanghai composite declining by 1.15% to 3,340.29.

European stocks advanced across the board as investors brushed off tensions between the U.S. and China and bet upon U.S covid-19 stimulus package. Autos sector led the gains after China reported a surge in car sales in July, as all sectors and major bourses entered positive territory. Meanwhile, Oil and gas stocks also surged during the day. Among the regional bourses, CAC-40 in France led the regional gains adding 2.35% followed by Germany’s DAX which edged higher by 1.96%. UK’s FTSE-100 index also advanced 1.57%.

In the U.S, Wall Street continued to advance over Covid-19 stimulus hopes, with S&P 500 jumping to rose fresh all-time high amid a rotation out of technology shares and into stocks that would benefit from a reopening of the economy and a vaccine, such as cruise lines and airlines. The index gained 0.5% and was within 1% of reaching its Feb. 19 record of 3,393.52.The Dow Jones Industrial Average also rose 268 points, or 1%, while the tech heavy Nasdaq Composite struggled, and slid 0.1%.