KARACHI: The benchmark KSE 100 index recorded an exceptional gain on Monday thanks to a general buying binge at attractive prices in the stock market amid a comparatively quiet political environment and an improved economic outlook.
It was a clear sky day at PSX, according to Ali Najib, Head of Sales at Insight Securities, as the index moved smoothly during trading hours and ended the day at 114,230, up 983 points or 0.87 percent from the previous day.
The benchmark index had some profit-taking at first, but there were no problems after that. Following last week’s big selling, investors engaged in some value-hunting since blue-chip stocks were offered at attractive price points with respectable dividend yields.
“The bears were restrained during trading due to the prospect of better corporate announcements in the upcoming result season, the expectation that January inflation may land at 3-3.5 percent, and the expectation of a 100 basis point cut in interest rates at the State Bank of Pakistan’s Monetary Policy Committee, which is scheduled for January 27,” he added.
According to Topline Securities Ltd., the bulls decisively dominated today’s trading session, driving the market to remarkable gains.
Strong buying across all sectors, supported by anticipation of higher December quarter earnings and optimism over economic indicators, drove the surge. Notably, after last week’s market decline, investor activity increased in high-volume industries and blue-chip companies.
The successful introduction of the new pickup truck, the “JAC T9 Hunter,” which attracted significant interest from investors, propelled Ghandhara Automobiles Ltd. to close at its upper circuit, continuing its upward trajectory in the auto industry.
Following the transaction, shares of Engro Holdings were transferred to investors today, causing a negative contribution of up to 275 points to the KSE-100.
According to Ahsan Mehanti of Arif Habib Corporation, despite rumors about the earnings season and the ongoing government negotiations with the PTI, stocks ended the day higher, driven primarily by second and third tier scrips.
He went on to say that the positive close at PSX was triggered by the rising price of crude oil throughout the world and the anticipated reduction in the SBP key policy rate announcement this month.
With a combined gain of 620 points, Mari Petroleum, Millat Tractors, United Bank, Service Industries, and Fauji Fertilizer were major contributors to the upward trend.
In contrast to previous week, trading activity was muted despite the market’s impressive performance. Day-over-day, the traded value increased 13.94 percent to Rs28.28 billion, while the trading volume increased 4.27 percent to 521.20 million shares.
