KSE100 Index showed first signs of recovery

Karachi, May 20, 2019: Pakistan Stock Exchange closed higher on Monday. KSE100 index showed first signs of recovery and that too on a day when SBP is scheduled to announce monetary policy and layer announced a 150bps hike, however, the market seems to have incorporated it already. 

Buying activity was observed in index heavyweights after an initial plunge of 814pts. Several stocks especially the Cement sector, saw lower circuits. E&P Sector showed mixed reaction throughout the day, with OGDC trading above last trading day’s closing whereas PPL and POL saw attrition. PPL hit lower circuit but recovered by the end of the session. Similarly, O&GMCs performed well and SSGC, SNGP were seen trading at upper circuits.    

The Index closed at 33,250 points as against 33,166 points showing an increase of +84 points (+0.3 percent DoD). Sectors contributing to the performance include Banks (+74 points), O&GMCs (+50 points), Fertilizer (+31 points), Transport (+18 points), Tobacco (+15 points) and E&P (-118 points).

Volumes increased significantly from 90 million shares to 166 million shares (+83 percent DoD). Similarly, Average traded value also doubled from US$ 21 million to US$ 41 million.

Stocks that contributed significantly to the volumes include KEL, TRG, UNITY, LOTCHEM, and PIBTL, which formed 29 percent of total volumes.

Stocks that contributed positively include ENGRO (+44 points), HBL (+41 points), UBL (+33 points), PSO (+22 points) and PIBTL (+18 points). Stocks that contributed negatively include PPL (-94 points), MCB (-26 points), OGDC (-22 points), FFC (-10 points) and MTL (-9 points).

Ahsan Mehnati of Arif Habib said that Stocks showed recovery led by oversold cement, banking, and oil scrips amid FM approval of Rs17bn Disaster Support Fund for PSX.

He said Uncertainty over SBP policy rate decision later today and falling rupee parity against dollar invited mid-session pressure. He added that tax amnesty scheme announcement by PTI Govt, foreign inflows, upbeat data on trade deficit for Jul-Apr’19 and FM affirmations up to Rs600 billion PSDP in federal budget FY19 played a catalyst role in bullish close. 

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