Stock market surges by 825 points on policy rate cut hope

Stock market surges by 825 points on policy rate cut hope

KARACHI: The stock market surged by 825 points on Monday owing to expected policy rate cut, MSCI review and reports of deal of the government with PML (N).

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 36,803 points as against 35,978 points showing an increase of +825 points.

Analysts at Arif Habib Limited said that the market surged again with a mammoth 840 points and closed the session near day’s high that too at a time when the index has already increased by around 7000 points from low.

“Deal with PML (N) being on the cards, besides possible cut in SBP policy rate and MSCI review proving to be a non-event gave confidence to investors and rather than adjusting downwards, as was anticipated (possibly due to overbought levels) the market went up.”

Market volumes increased as well over the day, registering trading volumes of 283 million shares, contributed mostly by Banks (50.4 million) followed by Cement (32.5 million) and Technology (30.7 million).

Among scrips, BOP registered trading volume of 35.9 million shares, followed by WTL (14.5 million) and MLCF (11.7 million).

Sectors contributing to the performance include Banks (+221 points), E&P (+142 points), Power (+108 points), Cement (+82 points) and O&GMCs (+71 points).

Volumes increased from 210.6mn shares to 282.9mn shares (+34 percent DoD). Average traded value also increased from US$ 42.1mn to US$ 58.5mn (+39 percent DoD).

Stocks that contributed significantly to the volumes include BOP, WTL, MLCF, PIAA and LOTCHEM, which formed 29 percent of total volumes.

Stocks that contributed positively include HUBC (+81 points), UBL (+56 points), OGDC (+52 points), HBL (+48 points) and PPL (+42 points). Stocks that contributed negatively include PAKT (-28 points), PMPK (-8 points), MUREB (-4 points), DCR (-1 points), and SHFA (-1 points).

Leave a Reply

You have to agree to the comment policy.