KARACHI: The Pakistan Stock Exchange’s benchmark KSE-100 Index gained massive 770 points and closed at 44,310 on Tuesday amid rupee devaluation.
By day’s close, the benchmark index was up 1.77 per cent as investors priced in the impact of a worsening exchange rate on the country’s balance of payments situation.
“Consequently, investors jumped into dollar-hedged sectors in expectations of better returns in coming sessions,” commented Topline Securities. “E&Ps, textile and IPPs contributed 217 points to the index. Similarly, banks emerged as the top performer in the market and added 413 points to the index in anticipation of a rise in the policy rate.”
“Initially, interest was seen in the financial sector on expectations of an increase in the policy rate on the back of higher inflation amidst currency depreciation,” reported JS Research. “Optimism was also witnessed in the textile stock as investors took the advantage of the US dollar hitting a new high,” it added.
Over the day, 374 scrips recorded activity, of which 209 advanced, 147 declined and 18 remained unchanged. Both volumes and values were markedly higher, climbing to 220 million shares from 141m a day earlier, and to Rs10.98 billion from Rs5.36bn a day earlier.
Chemicals attracted most of the volumes, with 38m shares traded. Banks followed with 25.3m shares traded, then technology and cement stocks with 20.5m and 18.5m shares traded, respectively.
The stocks opened keeping previous day’s positive note and gained 288 points to reach 43828 level in early trading. The PSX crossed 44,000 level after adding huge 704 points till midday.
On Monday, the stocks edged higher with support of blue-chip stocks. OGDC, MCB, ENGRO, POL, and PSO remained top contributors to the 100-share index, adding 181 points. The benchmark index gained 176 points to close at 43,540 points.
Automobile assemblers closed in the green zone, as auto experts predict demand for automobile to cross 500k mark by 2022. Pak Suzuki Motors (PSMC) and Honda Cars (HCAR) gained 1-4 percent.
Market witnessed thin participation, where volumes posted decline of 40 percent, while value declined by 22 percent. Stocks including HBL (-1.4 percent), PAKT (-5 percent), DAWH (-2.6 percent), PPL (-1.1 percent) & PMPK (-5 percent) withheld 124 points from the index. Moreover, out of 377 active stocks, 182 advanced while 180 declined and the rest closed unchanged.
