Bullish momentum steered the market sentiments at Pakistan Stock Exchange (PSX) on the first trading day of the week following an extended break, as benchmark KSE-100 index gained 622 points by the closing bell to clock at 45,796 level.
On Monday, the benchmark KSE-100 opened on a positive note and touched intra-day high at 45,807.49 level after gaining over 632 points.
During the session, investor sentiments were primarily buoyed by MSCI Rebalancing in which the additions namely, Lucky Cement and TRG Pakistan fetched buying interest, while Muslim Commercial Bank and Habib bank Limited were also other constitunets which were added to the index, however while Oil & Gas Development Company Limited which got deleted from the MSCI Emerging Markets index witnessed some selling pressure during the session. on May 12, Morgan Stanley Capital Index (MSCI) released the results of its semi-annual index review (SAIR), whereby Pakistan now has a weight of 0.023% as compared to 0.016% previously.All changes would be effective from May 28, 2021.
Investors’ sentiments were also lifted after Federal Board of Revenue reported details of projects under amnesty scheme, which injected fresh interest in Construction sector allied industries (Cement, Steel, etc).Furthermore a report by foreig media outlet indicated that top government officials, analysts and corporate leaders have reposed trust in the growing economy and said higher GDP growth in 5-6 percent per annum was going to be a ‘new normal’ in the next five years amid considering strong economic indicators of the country. “Yes, we have the potential to grow at a much higher rate in coming years. The State Bank of Pakistan projects three percent GDP growth in the financial year 2020-21 and four percent in 2021-22,” Dr. Reza Baqir, Governor, State Bank of Pakistan (SBP), told the paper during an event in Dubai last week. Positive projections and upbeat market sentiments kept the index bullish throughout the session.
During the session Market Capital increased by Rs.68.07 billion, while total value traded increased by Rs.10.85 billion to Rs.20.32 billion.
The volume at KSE-100 surged from 78.6 million shares recorded in the previous session to 201.9 million shares, whereas the all-share volume also jumped from 245.64 million shares from the previous session to 437.45 million shares.
The volume chart was led by WorldCall telecommunication limited, followed by K-electric Limited and Ghani Global Limited. The scrips exchanged 72.91 million, 38.31 million and 35.96 million shares respectively.
According to the National Clearing Company of Pakistan Limited (NCCPL) foreign investors were net buyers of about $1.17 million worth of equities. Among the local investors, the buying chart was led by Individuals and Brokers which mopped up $8.18 million and $1.87 million worth of equities. However, the selling chart was led by Companies and Mutual funds which offloaded around $3.3 million worth of equities each.
During the session, sectors which lifted the index were Cement with 200 points, Technology & Communication with 140 points, Fertilizer with 55 points, Food & Personal Care Products with 40 points and Textile Composite with 35 points. Among the scrips, the most points added to the index was by TRG Pakistan which contributed 135 points followed by Lucky Cement with 94 points, UNITY with 34 points, Muslim Commercial Bank with 32 points and Maple Leaf Cement Factory with 24 points.
However, sectors which dented the index were Oil & Gas Exploration Companies with 61 points, Synthetic & Rayon with 2 points, Paper & Board with 1 points and Leather & Tanneries with 1 point. Among the scrips, the most points taken off the index was by Oil & Gas Development Company limited which stripped the index of 65 points followed by Pakistan Petroleum Limited with 19 points, Habib Bank Limited with 8 points, National Refinery Limited with 8 points and Bank Al Falah Limited with 6 points.