Stock market gains 421 points on positive budget sentiments

Stock market gains 421 points on positive budget sentiments

KARACHI: The stock market gained 421 points on Monday as positive sentiments prevailed on budget announcement. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 48,726 points as against last Friday’s closing of 48,305 points, showing an increase of 421 points.

Analysts at Arif Habib Limited said that the market opened on a positive note following the Budget announcement on Friday evening.

Dividend anticipation from SOEs (State Owned Enterprises) helped OGDC propel to hit upper circuit (with a hefty dividend payout expectation), followed by positive price performance of PPL.

Similarly, positive measures for Footwear, Tyre, Refinery, Steel and Cement sectors supported the listed scrips in these sectors to perform positive during the session.

Market hit a high of 677 points after the pre-opening session, after which profit booking brought the index down by roundabout 400 points, however, buying momentum continued which enabled Index to close +421 points.

Among scrips, BYCO led the table with 108.4 million shares, followed by HUMNL (108.1 million) and WTL (98 million).

Sectors contributing to the performance include E&P (+202 points), Cement (+92 points), Engineering (+52 points), Banks (+42 points), O&GMCs (+32 points).

Volumes increased from 1024 million shares to 1217.8 million shares (+19 percent DoD). Average traded value also increased by 72 percent to reach US$ 275.1 million as against US$ 159.8 million.

Stocks that contributed significantly to the volumes include BYCO, HUMNL, WTL, ASL and AGL, which formed 32 percent of total volumes.

Stocks that contributed positively to the index include OGDC (+106 points), PPL (+68 points), SYS (+44 points), INIL (+27 points) and POL (+25 points). Stocks that contributed negatively include TRG (-61 points), FFC (-27 points), UNITY (-17 points), FFBL (-13 points) and NRL (-10 points).

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