Bullish momentum continued at Pakistan Stock Exchange (PSX) as stocks extended gains for the third consecutive session on Tuesday, as investors’ sentiments remained upbeat on positive economic indicators.
On Tuesday, the benchmark KSE-100 index clocked at 46,300 index level after gaining about 203 points by the closing bell, as the Index remained positive throughout the session touching an intraday high of 46,371.69 and a low of 46,047.66.
Investors anticipating tax incentives for the industries in the upcoming budget helped the KSE-100 index 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.
Moreover, investors also cheered Rating agency Moody’s latest report, which said that the credit profile of Pakistan (issuer rating B3) reflects the country’s “baa2” economic strength, which is underpinned by the robust long-term GDP growth potential and large scale of the economy, balanced against low per capita incomes and global competitiveness.
“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.12.68 billion, while total value traded increased by3.57 billion to Rs.23.51 billion.
The volume at KSE-100 jumped from 191.7 million shares recorded in the previous session to 224.83 million shares, whereas the all-share volume receded from $766.6 million shares from the previous session to 677.38 million shares.
The volume chart was led by Worldcall Telecom limited, followed by Unity Foods Telecard Limited. The scrips exchanged 150.35 million, 66.84 million and 37.68 million shares respectively.
According to the National Clearing Company of Pakistan Limited (NCCPL) foreign investors shunned their selling spree and were net buyers of about $0.83 million worth of equities.
Among local investors, the selling chart was led by Insurance Companies and Mutual Fund , offloading $2.1 million and $1.4 million worth of equities. While, Other organizations and Brokers led the buying chart, mopping up $2.1 million and $1.7 million worth of equities.
During the session, sectors which lifted the index were Commercial Banks with 155 points, Cement with 39 points, Food & Personal Care Products with 32 points, Fertilizer with 18 points and Textile Composite with 17 points. Among the scrips, the most points added to the index was by Habib Bank Limited which contributed 68 points followed by United Bank Limited with 31 points, UNITY with 31 points, DG Khan Cement with 21 points and Engro Fertilizers Limited with 16 points.
However, sectors which dented the index were Power Generation & Distribution with 28 points, Chemical with 23 points, Pharmaceuticals with 17 points, Insurance with 12 points and Oil & Gas Exploration Companies with 10 points. Among the scrips, the most points taken off the index was by Colgate Pakistan which stripped the index of 27 points followed by Hub Power Company with 19 points, Mari petroleum limited with 15 points, TRG Pakistan with 10 points and Pakistan State Oil with 8 points.