Daily Times

Pakistan Stock Exchange (PSX) began the week on a positive note, as benchmark Kse-100 re-gained 46,000 level, after it added 219.60 points before the closing bell to clock at 46,087.64 index level.

The index began trading in the green territory right from the opening bell, as fresh buying activity was witnessed across the board, mainly in Cement, engineering (steel), power and oil &gas marketing companies, as market gears for financial results season. The Index remained positive throughout the session touching an intraday high of 46,189.43. This can be accredited to the after-effects of the Monetary Policy Comitte meeting that was held on Friday, wherein the State Bank of Pakistan (SBP) maintained the policy rate at 7%. Expectations of improvement in the financial performance for the quarter ended December 31, 2020 further boosted investors’ sentiments.

On Friday, the central bank kept the benchmark interest rate unchanged at 7 percent on Friday while viewing growth and inflation expectations as well-anchored, although it says COVID-19 is still posing challenges to economic outlook.”At its meeting on 22nd January 2021, the Monetary Policy Committee (MPC) decided to maintain the policy rate at 7 percent. The MPC noted that since the last meeting in November, the domestic recovery has gained some further traction. Most economic activity data and indicators of consumer and business sentiment have shown continued improvement. As a result, there are upside risks to the current growth projection of slightly above 2 percent in FY21,” the SBP said in a statement.

Thevolume at Kse-100 surged from 236.25 million shares recorded in the previous session, to 258.30 million shares, while all-share volume also increased from 430.63 million shares in the previous session to 470.06million shares. The volume chart was led by K-Electric Limited, Unity Foods Limitedand TRG Pakistan Limited. The scrips exchanged 36.61 million shares, 36.26 million shares and 29.80 million shares, respectively.

According to the National Clearing Company of Pakistan Limited foreign investors’ sold $5.01 million worth of shares. Among local investors the sellingchart was led by Banks and Mutual Funds with $3.65 million and $1.03 million shares. However, Individuals and Companies were net buyers of worth $4.25 million and $2.15 million worth of equities.

Sectors that lifted the index were Technology & Communication with 96 points, Cement with 49 points, Pharmaceuticals with 45 points, Fertilizer with 38 points and Power Generation & Distribution with 22 points. Among the scrips, the most points added to the index was by TRG Pakistan which contributed 85 points followed by Hub Power Company Limited with 20 points, Azgard Nine Limited with 17 points, Unity Foods Limited with 17 points and Fauji Fertilizer Company Limited with 17 points.

TRG Pakistan continued to sway over the trading floors, as it added the highest points to the benchmark index. This was followed by Hub Power Company, whose stocks were lifted after the company announced an agreement between its wholly owned subsidiary, Narowal Energy Limited and Central Power Purchasing Agency (Guarantee) Limited (Power Purchaser) to share future O&M savings and heat rate efficiency in the larger national interest and sectoral sustainability.

The sectors that weighed down the index were Oil & Gas Exploration Companies with 31 points, Commercial Banks with 24 points, Inv. Banks / Inv. Cos. / Securities Cos. with 16 points, Food & Personal Care Products with 10 points and Insurance with 7 points. Among the scrips, the most points taken off the index was by HabibBank Limited which stripped the index of 24 points followed by Dawood Hercules Corporation Limited with 17 points, Oil &Gas Development Company Limited with 15 points, United Bank Limited with 13 points and Meezan Bank Limited with 12 points.