Stock market gains 406 points on investors’ optimism

Stock market gains 406 points on investors’ optimism

KARACHI: The stock market gained 406 points on Tuesday as investors optimistic about financial results to be announced by banks.

The benchmark KSE-100 index closed at 38,627 points as against 38,221 points showing an increase of 406 points.

Analysts at Arif Habib Limited said that the market opened on a positive note today with +158. Banking sector remained in the limelight, which was further helped by Cement, Refinery, Textile and Chemicals.

Profit selling was largely observed in E&P and Fertilizer sectors, however, this did not affect the market sentiment. Two sessions are left prior to Eid over the weekend, however, investors look optimistic considering the ongoing results season, especially due to Banks.

UBL is scheduled to post results on August 5th. Banking sector led the volumes with 60.8 million shares, followed by Cement (59.6 million) and Technology (35.6 million). Among scrips, PAEL topped the volumes with 26.2 million, followed by MLCF (26.1 million) and BOP (23.4 million).

Sectors contributing to the performance include Banks (+173 points), Cement (+73 points), Technology (+29 points), Textile (+21 points) and Autos (+20 points).

Volumes increased from 288.1 million shares to 394.3 million shares (+37 percent DoD). Average traded value also increased by 22 percent to reach US$ 97.3 million as against US$ 79.7 million.

Stocks that contributed significantly to the volumes include PAEL, MLCF, BOP, FFL and PRL, which formed 30 percent of total volumes.

Stocks that contributed positively to the index include LUCK (+44 points), MEBL (+42 points), BAHL (+31 points), TRG (+31 points) and MCB (+30 points). Stocks that contributed negatively include DAWH (-7 points), JLICL (-7 points), NESTLE (-6 points), ARPL (-4 points), and FFC (-3 points).