Stock market begins new fiscal year with 468 points gain

Stock market begins new fiscal year with 468 points gain

KARACHI: The stock market gained 468 points on Wednesday to begin the new fiscal year 2020/2021 on positive note.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 34,889 points as against 34,421 points showing an increase of 468 points.

Analysts at Arif Habib Limited said that the first day of the financial year 2021 took the index close to 35K level, posting gains of 502 points during the session, mostly inline with regional markets.

Major contributors were Cement (on the back of recent increase in cement price / bag and reduction in FED charges), E&P (due to an increase in international crude prices), OMCs (primarily PSO, which gained from recent increase in retail price, eroding inventory losses at financial year end) and Fertilizer (for reasons of provision of cheap gas for feedstock for few fertilizer companies).

Technology sector realized 78.8 percent shares, followed by Cement (64.4 percent) and Power (44.6 percent). Among scrips, KEL topped 39.1 percent shares, followed by HUMNL (30.7 percent) and TRG (26.5 percent).

Sectors contributing to the performance include Cement (+178 points), E&P (+116 points), Power (+87 points), Fertilizer (+84 points) and O&GMCs (+25 points).

Volumes increased further from 223.3 percent shares to 315.0 percent shares (+41 percent DoD). Average traded value also increased from US$ 44.6 percent to US$ 63.5 percent (+42 percent DoD).

Stocks that contributed significantly to the volumes include KEL, HUMNL, TRG, MLCF and DGKC, which formed 43 percent of total volumes.

Stocks that contributed positively to the index include LUCK (+95 points), HUBC (+68 points), OGDC (+58 points), PPL (+41 points) and ENGRO (+38 points). Stocks that contributed negatively include UBL (-22 points), BAFL (-17 points), MCB (-16 points), BAHL (-14 points), and HBL (-11 points).