Stocks post record gains as volume hits 6-month high
KARACHI: Bulls dominated the Pakistan stock market on Thursday as buying continued for the 10th consecutive session, taking the cumulative gains at 2,423 points (7.2 per cent) in what turns out to be the longest winning streak in two and half years, since January 2018.
The KSE-100 index rose as swiftly as the lightning by 447 points (1.25pc) and stormed past the 36,000-level to close at 36,142. Market capitalisation increased by Rs66 billion in a single session while volume galloped to 467 million shares.
An excited official at the apex regulator, the Securities and Commission of Pakistan, in a short statement pointed out: “In today’s session, the PSX witnessed volume of 467m shares which is the highest in 147 sessions, last seen on Dec 5, 2019. Traded value also went up by 20pc over the previous day to $94m, last seen on April 21.” According to Bloomberg data, the 7.2pc rise in the index in 10 straight sessions represented “the third biggest increase globally”.
Foreign outflows slowed down to $0.24m worth stocks while institutional buying lifted values of both blue chips and second-tier stocks. Individuals erred on the side of caution and went in for profit-booking, spooked by the doddering height of the index.
Top volume stocks on Thursday were Unity Foods, Pak Elektron and TRG which cumulatively contributed over 119m shares. There has been no dearth of positive news. The ongoing massive rally was triggered on June 26 following the SBP policy cut by 100 basis points which saw investors fall over one another for leveraged scrips trading at attractive levels.
Sectors that have seen major price spiral include exploration and production, banking, pharmaceutical, cement and oil marketing companies. Investors have been emboldened by the slowdown in new virus-related cases in the country, declining fatalities and recoveries beating the total infections. The SBP also revealed that the country’s foreign exchange reserves were up by $819m to $18.8bn.
Gainers in banking were Alfalah, National, Habib and Meezan. Crude prices edged higher in the international market which saw investors’ interest in exploration and production sector where Pakistan Petroleum, Pakistan Oilfields and Oil and Gaas Development Company closed in the green.
Profit-taking was witnessed in pharmaceutical where stocks were too hot to handle. Cement scrips also took a day off from the rally. However, the sector least affected by Covid-19 and even profited by it has been technology where Avanceon and Netsol hit their upper circuits.
Published in Dawn, July 10th, 2020