A weekly review: Stocks surge by 883.75 points as Middle East tensions mitigate

0 232

Get real time updates directly on you device, subscribe now.

KARACHI (City News) – The Pakistan Stock Exchange (PSX) in the outgoing week witnessed massive overall spike in its gains as local and foreign investors rampaged across the market to quickly hit upper circuits after the war clouds hanging over the region due to US-Iran hostilities dissipated which provided the investors the much-needed comfort to move funds from gold and money market back to risky assets that may provide higher returns.

On a weekly basis, the benchmark KSE-100 Share Index was tossed up by 883.75 points as yesterday the Index ended at 17-month high 43,207.05 points as compared to last Friday’s 42,323.30.

Yesterday, bulls continued to hold sway at the stock market by 683.98 points or 1.61 per cent with closing at 43,207.05 points.

With an additional eye-popping gains of 1,166 points delivered on Thursday, the index raced up by total 1,849 points or 4.43pc, which represents the highest two-day increase since May 23, 2019.

The investors scrambled to deploy cash in under-valued scrips, which provided a breather to the usual lead gainers.

Both days, there was no major negative news flow that could thwart the market exuberance. On the political front, the belligerent atmosphere in the country took a pause after some reconciliation between the government and the opposition following the consensus passage of Army, Air Force and Navy Amendment Bills.

On Thursday, the Index traded in a range above 1,100 level, and showed an intraday high of 42,555.48, and a low of 41,357.56. Of the 92 traded companies in the KSE100 Index 83 closed up while 9 closed down. Total volume traded for the index was 249.49 million shares.

All Share Volume increased by 82.42 million to 362.49 million shares. Market Cap increased by Rs173.56 billion. Total companies traded were 381 compared to 353 from the previous session. Of the scrips traded 325 closed up, 44 closed down while 12 remained unchanged. Total trades increased by 4,748 to 95,262. Value Traded increased by 2.07 billion to Rs13.77 billion.

On Wednesday, the PSX witnessed bearish trend as the KSE-100 index fell by 546.91 points or 1.32 percent. The Index closed at 41,357.56 points as compared to 41,904.47 points on Tuesday, showing a decline of 546.91 points. Of the 92 traded companies in the KSE100 Index 12 closed up 79 closed down, while 1 remained unchanged. Total volume traded for the index was 209.28 million shares.

On Monday, a staggering sum of Rs169 billion was wiped off the market capitalisation at the stock market in a single day.

amid sabre-rattling by the two hostile nations the US and Iran following the killing of latter’s military commander Qasem Soleimani in an American drone attack in Baghdad. That day, 325 listed stocks bled profusely against just 28 scrips that managed to escape the carnage. The Index had fallen 1,027 points (2.43 per cent) and sank way below the 42,000-level at 41,296.

Analysts at Arif Habib Limited said geo-political and regional security concerns took toll on market sentiment and investors resorted to selling.

Earlier, investors’ optimism continued as they saw the market back in the green after two earlier dismal years of negative returns.

From Aug 16, 2019 when the benchmark index had hit the pit at 28,765 points, the market has witnessed a spectacular rally that has carried it up by 50pc in fewer than five months.

Major developments earlier were, firstly, inflow of $1.3 billion from Asian Development Bank (ADB) for budgetary support and to address power sector reforms, secondly, worker remittances during November which stood at $1.8 billion (up 9.4 percent as compared to the same month last year), thirdly, forex reserves reaching $16 billion, up by 0.4 percent on a weekly basis, excluding tranche received from ADB, and fourthly, the latest PIB auction that saw 10-yr PIB cut off below 11 per cent that was last seen in Oct.18.

Improvement on the external front together with stability in the Pakistani Rupee was expected to reassure foreign investors.

Meanwhile, inflationary readings are set to touch peak in January 2020 (this month) with an imminent interest rate cut to follow, domestic investors remain jubilant as well, he said.

Get real time updates directly on you device, subscribe now.

Leave A Reply

Your email address will not be published.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More