PSX welcomes New Year with 929 points gain

KARACHI: The Pakistan Stock Exchange (PSX) welcomed the new year with a bang. The indices rallied as investors went out to hand pick blue chips on the first trading session of the year. However, the absence of volumes continued to remain a cause of concern.

According to market analysts, positive sentiments were driven by reports that China has pledged to lend at least $2 billion to Pakistan to shore up its foreign exchange reserves. Moreover, Asad Umar’s recent statements that an incoming investment package from the Kingdom of Saudi Arabia (KSA), which promises to be the biggest foreign investment in Pakistan history, also boosted investor sentiments.

The benchmark KSE 100 index jumped 980.31 points to touch an intraday high of 38,046.98 before settling at 37,995.76, up by 2.45pc or 929.09 points. The KMI 30 index enjoyed an even better relief rally with investors on the hunt for cement and oil stocks. The index recorded a 3.83pc or 2,194.60 points gain from the previous day’s close and settled at 63,368.16 points. The KSE All Share index inflated by 586.93 points with 207 advancers and 98 decliners.

The market volumes demonstrated weak investor confidence in the market, as total traded shares fell by a massive 58pc and were recorded at 96.61 million. The KSE 100 index scripts held over 65pc share in the volumes.

The commercial bank sector was the top traded sector with 17.34 million shares exchanging hands, followed by the chemical sector with 13.34 million shares.

The top traded script on Tuesday was Pak Elektron Limited (PAEL +4.66pc) with a volume of 11.98 million. Hovering near its 52-week lock, the script had shed 45pc in the past year. TRG Pakistan Limited (TRG +4.98pc) was next with 6.31 million shares exchanging hands. The script had depreciated 21pc last year.

The oil and gas exploration sector was the top performer of the session. Oil and Gas Development Company Limited (OGDC +5.00pc) and Pakistan Oilfields Limited (POL +5.00pc) both ended at the day at the maximum possible price.

The cement sector also clinched handsome gains of 3.65pc. Lucky Cement Limited (LUCK +5.00pc), DG Khan Cement Company Limited (DGKC +5.00pc) and Maple Leaf Cement Company Limited (MLCF +5.00pc) were among those that settled at their upper circuit breakers.

Must Read