Daily Times

Bulls marched at the Pakistan benchmark kse-100 on Thursday to witness record breaking volumes to lift the index past 42,000 mark. The index gained 353 points by the session closing to clock at 42,188.11 market level- the highest index closing achieved since January 28, 2020, following the highest all-share volume in the last 15 years.

Positive momentum was carried forward from the previous session, following the global appreciation of Pakistan Stock Exchange following a report released by the New York-based global financial markets research firm marketcurrentswealthnet.com, which said Pakistan’s stock market (has become) the best performer in Asia and the fourth best-performing stock market in the world. In a brief under the title “Denmark and Pakistan: the surprising stock markets that outperformed in 2020”, New York based firm said PSX benchmark KSE-100 index has given a return on investment of 38.5% in dollar terms as foreign capital has been flowing into the market after the yield on the nation’s bond fell below double digits.

The Market participants cheered the PSX’s performance and injected historic volumes on the day with individuals leading the investment chart and bought $7.5 million worth of stocks, followed by Mutual Funds, who were net buyers of $1.7 million worth of equities. However, foreign investors remained net sellers of $1.8 million worth of equities.

The index volumes appreciated from 526.72 million shares in the previous session to 540.76 million shares, while the overall market volumes sky rocketed 919 million shares.

The volume chart was led by Unity Foods Limited, followed by Bank of Pakistan and K-Electric Limited. The scrips exchanged 51.4 million, 49.76 million and 41.81 million shares, respectively.

Sectors which lifted the index were Cement with 89 points, Commercial Banks with 51 points, Oil & Gas Marketing Companies with 44 points, Textile Composite with 41 points and Fertilizer with 35 points. Among the scrips, most points added to the index was by Maple Leaf Cement Factory Limited which contributed 31 points followed by Systems Limited with 29 points, Kohinoor Textile Mills Limited with 22 points, National Bank of Pakistan with 21 points and Pioneer Cement Limited with 19 points.

Sectors which added pressure to the index were by Power Generation & Distribution with 23 points, Oil & Gas Exploration Companies with 6 points, Automobile Parts & Accessories with 3 points, Mutual Fund with 2 points and Leather & Tanneries with 1 points. Among the scrips, most points taken off the index was by Hub Power Company Limited which stripped the index of 25 points followed by Bank Al Habib Limited with 13 points, Pakistan Oilfields Limited with 8 points, Oil & Gas Development Company Limited with 6 points and Dawood Hercules Corporation Limited with 6 points.

Global markets: Global stocks witnessed a mixed trend as Investors followed series of economic data from around the world

In Asia, stocks traded mixed, as investors’ hopes for revival of economic activity jumped following a positive data, indicating a growth of manufacturing activity in China- world’s second largest economy, despite being the origin of Covid-19. A private survey by Caixin/Markit manufacturing Purchasing Managers’ Index (PMI) for August, showed Chinese manufacturing activity expanding at its fastest pace in nearly 10 years. However, investors also responded to official data released by national governments which showed Indian and Australian economies marked record contraction.

Among major regional markets, South Korea’s Kospi index led the gains, and soared 1.33% on the day to 2,395.90 followed by Nikkei 225 in Japan, which soared 0.94% to close at 23,465.53. However, Chinese stocks recorded some losses, as benchmark index shanghai composite closed down 0.58% to around 3,384.98, while Hong Kong’s Hang Seng index also lost 0.45% lower.

In Europe, stocks traded mixed as investors digested final euro area Markit Purchasing Managers’ Index (PMI) composite readings indicating expansion in the economic activity defying investors’ projections. August’s PMI for the region came at 51.9 against a forecast of 51.6, with a reading above 50 representing monthly expansion.

The pan-European Stoxx 600 advanced 0.7%, to pare some earlier gains, in the early trading with Travel and leisure stocks leading the gains while as all sectors except basic resources and tech held in positive territory. Among the major bourses in the region, CAC-40 in France gained 0.51%to close in the positive territory. However, UK’s FTSE-100 and Germany’s DAX closed in a negative territory, with each index recording a loss of over 0.5% each.

In U.S, Wall Street took a breather on Thursday as Stocks fell sharply in the wake of a recent rally to all-time highs. Tech stocks were the major losers on the day, after the sector led Wall Street to record peak. The Dow Jones Industrial Average dropped over 300 points in the early trade, while the S&P 500 also slid over 2.5%. The tech heavy Nasdaq Composite followed the trend and declined over 4%. Apple shares took major hit on the day and dipped more than 5%, putting them on pace for their worst day since March 20, when they fell 6.4%. Among other tech stocks Facebook, Amazon and Alphabet were also recording losses during the session which were down at least 3% each.