| Bulls charge as stocks surpass 46,000-barrier on political clarity | A reduction in political uncertainty helped investor sentiment
From Zeeshan Mirza
KARACHI: The bulls dominated trading at the Pakistan Stock Exchange (PSX) on Monday as the benchmark KSE-100 index rallied, reaching new records by gaining 1,700 points on the back of easing political turmoil.
Clarity on the political front after the dismissal of Imran Khan through a no-confidence motion — which was a first in the history of Pakistan — and diminishing concerns over the negative repercussions of the political uncertainty encouraged market players to buy stocks.
A united opposition bloc cobbled together 174 lawmakers to vote against PTI chairman Imran Khan after midnight Sunday in Islamabad, two more than required to remove Khan from office. His downfall was accelerated by inflation running faster than 12%, the rupee trading near a record low to the dollar and foreign reserves shrinking.
A report from Topline securities noted that PSX made new history where the KSE-100 index posted a historic single-day gain in terms of index points. “KSE-100 index today gained 1,700 points in a single day to close at 46,145 level, breaching two barriers 45,000 and 46,000, which is a new record in the history of PSX,” it stated.
The PSX index broke the previous single highest record of 1,566 attained on June 5, 2017 as the market was rejoicing the rare smooth handover of power to the lower house despite last night’s protests.
Investors also took a cue from the State Bank of Pakistan (SBP) governor’s assurance that timely measures will be taken to ensure economic stability, which helped the index power past the 46,000-point mark.
Former finance minister Miftah Ismail, shared the news on his Twitter handle: “Today PSX, our stock market, increased by 1,700 points. This is the largest single-day increase in Pakistan’s history.”
Ismail also mentioned that in the last two sessions the equity market has increased by 5.4% or 2,357 points. The KSE-100 index shot up from the moment trading began and maintained its upward march.
A report from Arif Habib Limited in its post-market commentary noted that bullish momentum was recorded Monday due to clarity over political unrest and appreciation of the Pakistani rupee against the US dollar.
“The market celebrated the prolong awaited clarity as the KSE-100 index posted a historic single-day gain in terms of index points,” the brokerage house stated.
Across the board rally was witnessed regardless of the foreign selling spree. Mainboard activity remained healthy. Moreover, the market even witnessed hefty volumes in the third-tier stocks.
Sectors contributing to the performance included banks (+385.4 points), cement (+228.5 points), technology (+199.3 points), fertiliser (+129.8 points) and exploration and production (+117.1 points).
Shares of 386 companies were traded during the session. At the close of trading, 330 scrips closed in the green, 45 in the red, and 11 remained unchanged.
Overall trading volumes soared to 557.67 million shares compared with Friday’s tally of 222.88 million. The value of shares traded during the day was Rs13.36 billion.
WorldCall Telecom Limited was the volume leader with 140.79 million shares traded, gaining Rs0.40 to close at Rs2.13. It was followed by Cynergyico PK Limited with 40.14 million shares traded, gaining Rs0.80 to close at Rs6 and Fauji Cement Company with 18.17 million shares traded, gaining Rs0.76 to close at Rs17.86.
