Share market continues bullish trend, gains 839 points

Share market continues bullish trend, gains 839 points

KARACHI: The share market continued bullish trend on Friday and gained 839 points, which is mainly attributed to reports on package for construction industry to be announced.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 31,621 points as against 30,783 points showing an increase of 839 points.

Analysts at Arif Habib Limited said that the market opened with a strong +488 points with traded volume of 5.1 million shares on the opening bell.

Overnight skyrocketing performance of crude oil (which saw a jump of around +35 percent), kept the sentiment strong and elevated till today, although international crude prices started correcting in the early hours.

Positive vibes from upcoming construction package by the Government also resulted in boisterous activity at the bourse, leading investors to buy cement and steel sector scrips at and near upper circuits.

As the E&P stocks hit upper circuits, the recently launched ETFs apparently were forced to fill the basket with available stocks (i.e blue chip Banks) that also added buying pressure to the benchmark index.

Resultantly, KSE100 climbed +1034 points during the session, and closed +839 points.

Cement sector continued leading the activity on the bourse with 61.7 million shares, followed by Banks (26.9 million) and O&GMCs (24.1 million). Among scrips, MLCF topped the table with 26.2 million shares, followed by HASCOL (15.8 million) and BOP (13.8 million).

Sectors contributing to the performance include E&P (+267 points), Banks (+145 points), Cement (+133 points), Power (+124 points) and O&GMCs (+91 points).

Volumes declined from 311.5 million shares the other day to 251.9 million shares (-19 percent DoD). Average traded value also dipped by 11 percent to reach US$ 55.5 million as against US$ 62.3 million.

Stocks that contributed significantly to the volumes include MLCF, HASCOL, BOP, UNITY and KEL, which formed 32 percent of total volumes.

Stocks that contributed positively to the index include HUBC (+115 points), OGDC (+88 points), PPL (+83 points), UBL (+63 points) and POL (+58 points). Stocks that contributed negatively include MCB (-39 points), HMB (-17 points), DAWH (-11 points), SYS (-10 points), and ENGRO (-9 points).