KARACHI: Pakistan stocks gained 477 points on Monday amid negative sentiments prevailed over rising political noise on Russia-Ukraine war.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) ended at 44,461 points as compared with Friday’s closing of 43,984 points, making a gain of 477 points.
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Analysts at Topline Securities said that the market opened on a negative note on the backdrop of ongoing conflict between Russia and Ukraine and increased political noise, as the index declined to make an intraday low of -339 points (down by 0.77 per cent).
However some recovery was observed in latter hours of trade, as value investors came in to accumulate near 44,000 index level, as a result index gained to close at 44,461 level (+477 points; up by 1.08 per cent)
On the corporate announcement front, SEARL disclosed it 2QFY22 earnings where company posted an EPS of Rs. 2.6 (down 6 per cent YoY). The result was higher than expectation due to higher than anticipated other income.
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Bank, Cement, Fertilizer and Power sectors’ stocks took the lead today where MEBL, LUCK, ENGRO and HUBC cumulatively added 164 points to the index. On the flip side, COLG, NBP and TRG lost value to weigh down on the index by 36 points.
Traded volume and value for the day stood at 208 million shares and Rs.6 billion respectively. AGL was today`s volume leader with 15.7 million shares.
According to the analysts the KSE-100 Index declined by 2 per cent on MoM basis, month of February started on a positive note for the market on account of good corporate announcement and resumption in IMF program, where investor`s felt that corrective economic measures will be taken in line with IMF conditions.
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However, market came under pressure in line with international markets on the back of confrontation between Russia and Ukraine, which has now escalated to armed conflict, where Russia has attached Ukraine, resulting in sanctions from US and other western countries.
This armed conflict in East Europe has triggered increased in commodity prices (crude oil, coal etc.), raising investors` concern with respect to current account deficit and inflation going forward. Investors participation in market reduced during the month, as average traded volume and value for the month of February stood at 226.8 million shares (down by 14 per cent MoM) and Rs.7.3 billion (down by 12 per cent MoM) respectively.
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Major events during the month of February-21 were C/A deficit clocking in at US$2.6 billion (posting highest ever monthly deficit), taking 7MFY22 Current Account Deficit to US$11.6 billion and MSCI Quarterly Index Review, in which there was no change in constituents for Pakistan; MSCI announced that Pakistan is now eligible for MSCI FM 100 index and MSCI FM 15 per cent Country Capped Index as part of the May 2022 Semi-Annual Index Review (SAIR).
