KARACHI: The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) gained 504 points on Tuesday as the trade deficit contracted.
The index closed at 45,391 points as against the previous day’s closing of 44,887 points, showing an increase of 504 points.
Analysts at Arif Habib Limited said that bullish momentum continued today as the confidence of investors gained due to improvement in economic numbers as trade deficit declined to $4.1 billion during December 2021 and drop down in food inflation.
READ MORE: Pakistan’s trade deficit swells by 100% in 1HFY22
The market opened in the green zone as traders took an aggressive bet on high beta stocks.
Tech stocks made the journey to the north as fresh allocation of funds towards the tech sector was initiated in order to make alpha returns.
In the last trading hour, across the board profit-taking was witnessed mainly in cyclical stocks. Activity continued to remain side-ways as the market witnessed hefty volumes in the 3rd tier stocks.
READ MORE: Headline inflation rises by 12.3% in December 2021
Sectors contributing to the performance include Technology (+112 points), Cement (+72 points), E&P (+59 points), Power (+42 points), and Pharmaceuticals (+36 points).
Volumes increased significantly from 195.2 million shares to 376.0 million shares (+92.6 per cent DoD). Traded value also increased by 96.1 per cent to reach US$ 72.3 million as against US$ 36.9 million.
Stocks that contributed significantly to the volumes include UNITYR3, TRG, WTL, TELE and FNEL.
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