Stock market rebounds with 723 points on buying activities

Stock market rebounds with 723 points on buying activities

KARACHI: The stock market rebounded on Wednesday and gained 723 points as significant buying activities seen during the day.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 39,850 points as against 39,127 points showing an increase of 723 points.

Analysts at Arif Habib Limited said that the market finally made a positive move today, which was jittery in the beginning but solidified by mid-day to post a total gain of 793 points and closing the index +723 points.

Buying activity was observed across the board but had major impact on Cement sector, especially DGKC and LUCK. SBP’s notification to transfer Federal government related deposits in part from commercial banking system to SBP caused selling pressure in BOP and NBP.

A number of mid-cap stocks (usually traded in high volumes) like UNITY, TRG and HASCOL traded at and near upper circuits in the later part of the session.

The rebound in Index is among other reasons also attributed to adjustment / settlement of CGT lately demanded by NCCPL from Investors which had negative impact on investor sentiment. Among scrips, HASCOL topped the volumes with 59.7 million shares, followed by UNITY (34.5 million) and TRG (23.9 million).

Sectors contributing to the performance include Cement (+133 points), Pharma (+74 points), O&GMCs (+66 points), Technology (+65 points) and Banks (+58 points).

Volumes increased from 406 million shares to 432.0 million shares (+6 percent DoD). Average traded value also increased by 9 percent to reach US$ 82.5 million as against US$ 75.4 million.

Stocks that contributed significantly to the volumes include HASCOL, UNITY, TRG, FFL and POWER, which formed 36 percent of total volumes.

Stocks that contributed positively to the index include LUCK (+46 points), SEARL (+39 points), TRG (+32 points), ENGRO (+32 points) and MCB (+27 points). Stocks that contributed negatively include NBP (-16 points), PMPK (-7 points), HGFA (-4 points), FFC (-4 points) and HMB (-3 points).