Pakistan Stock up on PM US visit

Karachi, July 23, 2019: Pakistan Stock Exchange (PSX) on Tuesday opened on a positive note with +17 points but faced selling pressure that took the index down by 129 points.

Prime Minister’s ongoing visit to was well received by the media and political analysts, but failed to garner the support as anticipated by stock traders. By the end of , cement and steel sector scrips saw and stocks like DGKC, MLCF, ISL were seen traded at upper circuits.

Much of this activity is attributed to short covering by investors, which have been selling bearish these sectors due to the anticipation of poor results. Overall volumes reached close to 100 million today, mainly led by Cement Sector with ~24 million shares (contributed by MLCF (13 million)) and followed by Technology (13 million) contributed by WTL’s 8 million.

The Index closed at 32,716points as against 32,585 points showing an increase of 131 points (+0.4 percent DoD). Sectors contributing to the performance include Cement (+43 points), Fertilizer (+27 points), Banks (+18 points), E&P (+17 points) and Pharma (+16 points).

Volumes more than doubled from 44.5 million shares to 96.9 million shares (+117 percent DoD). Average traded value also increased by 75 percent to reach US$ 21.7 million as against US$ 12.4 million. 

Stocks that contributed significantly to the volumes include MLCF, UNITY, WTL, FFL and PAEL, which formed 44 percen of total volumes.

Stocks that contributed positively include FFC (+26 points), EFERT (+14 points), HBL (+13 points), UBL (+11 points) and FCCL (+10 points). Stocks that contributed negatively include NESTLE (-16 points), ENGRO (-11 points), HUBC (-7 points), NATF (-6 points) and IGIHL (-6 points)

Analysts at Arif Habib said that socks closed bullish amid higher trades led by selected scrips across the board on institutional speculation in the earnings season.

US affirmations on investment, trade during Pak-US officials meeting, foreign inflows, improving economic data for current account, remittances in FY19 and surge in global equities played a catalyst role in bullish close, they added.

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