Stock market surges by 1,313 points on slowdown in inflation

Stock market surges by 1,313 points on slowdown in inflation

KARACHI: The stock market surged by 1,313 points on Monday owing to slowing down in inflation growth.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 39,296 points as against 37,984 points showing an increase of 1313 points.

Analysts at Arif Habib Limited said that the market continued trending upward after touching a low of 36,918pts on February 27.

The index went up by 1379 points during the session, and closed +1313 points. Leading indicator that helped the index surge significantly was the release of CPI data, which showed a 220bps decline over last month from 14.6% to 12.4%, beating all analysts estimates.

Following the release of CPI data, bond yields in secondary market also slashed that renewed the hopes of rate cut in the ongoing month, as per schedule.

In addition, increase of ~3% in international crude prices helped listed Oil & Gas chain to post gains. Cement sector led the trading volumes with 48.5M shares, followed by Banks (27M) and O&GMCs (21.1M). Among scrips, MLCF topped the volumes with 18.1M shares, followed by HASCOL (15.7M) and BOP (13.5M).

Sectors contributing to the performance include E&P (+234pts), Fertilizer (+210pts), Banks (+173pts), Cement (+157pts) and Power (+94pts).

Volumes increased from 202.2mn shares to 215.2mn shares (+7% DoD). Average traded value also increased by 5% to reach US$ 58.8mn as against US$ 55.8mn.

Stocks that contributed significantly to the volumes include MLCF, HASCOL, BOP, UNITY and WTL, which formed 31% of total volumes.

Stocks that contributed positively include ENGRO (+137pts), OGDC (+104pts), PPL (+86pts), HUBC (+73pts) and LUCK (+71pts). Stocks that contributed negatively include NBP (-30pts), BOP (-11pts), HMB (-3pts), SHFA (-2pts), and PSEL (-1pts).