Bullish momentum continued at Pakistan Stock Exchange (PSX) in the first session of the week following a positive momentum build-up on Friday, as investors continued to cheer the revised-up GDP growth projections and expectations of a people friendly- populist budget.
On Monday, the benchmark KSE-100 index closed above 46,000 index level after gaining about 182 points by the closing bell, as the Index remained positive throughout the session touching an intraday high of 46,314.39.
Market participants closely followed the political developments, and cheered resolution of disputes between the members of the ruling party.
Moreover, anticipation of tax incentives for the industries in the upcoming budget helped the KSE-100 index continue to boost market sentiments, as investors react to the news that the government may be formulating a populist budget proposal to keep the personal income taxes and power tariffs unchanged.
Market sentiments were also driven by upward revision of an estimated provisional GDP growth for the 2020/21 financial year at 3.94per cent, almost double the IMF and World Bank’s forecasts. Moreover, Federal Minister for Finance Shaukat Tarin also cemented this upgrade in the projection after he predicted that the growth rate would move to six percent in the next fiscal year.
“Growth rate is projected at five percent this year and would move further upward to six percent during the next fiscal year,” he said while addressing a virtual press conference and added that the government has developed short and long-term plans to achieve the target.
During the session Market Capital increased by Rs.37.25 billion, while total value traded decreased by Rs 0.28 billion to Rs.19.93 billion.
The volume at kse-100 receded from 295.8 million shares recorded in the previou session to 191.7 million shares, whereas the all-share volume rose from $710 million shares from the previou session to 766.6 million shares.
The volume chart was led by Worldcall Telecom limited, followed by Silk Bank petroleum and Summit Bank limited. The scrips exchanged 275.89 million, 36.61 million and 36.5 million shares respectively.
According to the National Clearing Company of Pakistan Limited (NCCPL) foreign investors were net sellers of about $4.3 million worth of equities.
Among local investors, the selling chart was led by Companies, offloading $2.3 million worth of equities.While, Brokers and Insurance Companies led the buying chart, mopping up $2.9 million and $1.06 million worth of equities.
During the session, sectors which lifted the index were Cement with 87 points, Commercial Banks with 42 points, Automobile Assembler with 36 points, Fertilizer with 26 points and Chemical with 22 points. AMong the scrips, the most points added to the index was by Systems Limited which contributed 24 points followed by Millat Tractors Limited with 23 points, Pakistan Petroleum Limited with 21 points, Maple Leaf Cement Factory with 21 points and Colgate Pakistan with 20 points.a
However, sectors which dented the index were Technology & Communication with 22 points, Power Generation & Distribution with 16 points, Oil & Gas Marketing Companies with 14 points, Investment Banks with 9 points and Tobacco with 6 points. Among the scrips, the most points taken off the index was by TRG Pakistan which stripped the index of 43 points followed by Hub Power Company with 12 points, Pakistan State Oil with 12 points, Mari petroleum Company Limited with 8 points and The Searl company Limited with 7 points.