Stock market gains 262 points on improved activity in banking scrips

KARACHI: The stock market gained 262 points on Wednesday as improved trading activity was seen in banking scrips.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) Index closed at 35,065 points as against 34,804 points showing an increase of 262 points.

Analysts at Arif Habib Limited said that the banking sector performed well today with BAFL hitting upper circuit and HBL, UBL & MCB also contributing positively to the Index.

Though crude oil prices remained under pressure, renewed interest in E&P sector from investors in general and foreigners in particular helped these stocks maintain a plateau.

Particular buying interest was also observed in chemical stocks, which have been in the limelight whether due to COVID-19 or anticipated tax relief in the upcoming budget.

EPCL, DOL, SPL performed well, whereas LOTCHEM after posting significant gains yesterday registered a nominal decline. Banking sector stocks topped the index with 32.8 million shares, followed by Technology (24.5 million) and Chemical (23.1 million).

Among scrips, PRLR registered treading volume of 11.7 million shares, followed by TRG (10.8 million) and BOP (9 million).

Sectors contributing to the performance include Banks (+273 points), Pharma (+24 points), Textile (+17 points), Technology (+15 points), E&P (-36 points), Cement (-10 points).

Volumes declined from 238.3 million shares to 218.7 million shares (-9 percent DoD). Average traded value also declined by 13 percent to reach US$ 48.4 million as against US$ 55.6 million.

Stocks that contributed significantly to the volumes include PRLR1, TRG, BOP, UNITY and LOTCHEM, which formed 22 percent of total volumes.

Stocks that contributed positively to the index include HBL (+67 points), UBL (+59 points), BAFL (+37 points), MEBL (+31 points) and MCB (+25 points). Stocks that contributed negatively include OGDC (-21 points), MARI (-14 points), EFUG (-6 points), ISL (-4 points), and HUBC (-4 points).

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