Stock market gains sharply on Moody’s positive rating

Stock market gains sharply on Moody’s positive rating

KARACHI: The stock exchange has registered significant gain of 837 points on Monday on upgrade of credit rating of Pakistan to stable from negative.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,124 points as against 39,287 points showing an increase of 837 points.

Analysts at Arif Habib Limited said that the market finally crossed 40,000 level today, which was last seen in February 2019.

Trading volumes also increased significantly to 557 million shares. International Ratings Agency, Moody’s has reportedly upgraded Pakistan’s outlook from Negative to Stable and affirmed B3 rating.

This further gave confidence to investors carrying the bull run witnessed from 36,000 level. Banking sector continued upbeat performance on the bourse with volumes crossing 110 million shares, followed by Cement (64.7 million) and Power (47 million). Among scrips, BOP led the volumes with 74.9 million shares, followed by KEL (40.8 million) and UNITY (37.7 million).

Sectors contributing to the performance include Banks (+516 points), Power (+73 points), O&GMCs (+53 points), Cement (+52 points), Textile (+36 points).

Volumes increased significantly from 431.8 million shares to 557.3 million shares (+29 percent DoD). Average traded value also increased by 14 percent to reach US$ 106.1 million as against US$ 93.2 million.

Stocks that contributed significantly to the volumes include BOP, KEL, UNITY, FFL and PAEL, which formed 34 percent of total volumes.

Stocks that contributed positively include HBL (+119 points), MCB (+92 points), UBL (+89 points), BAHL (+59 points) and HUBC (+51 points). Stocks that contributed negatively include OGDC (-49 points), PPL (-24 points), POL (-19 points), MTL (-8 points), and COLG (-7 points).

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