Pakistan Stock Exchange (PSX) witnessed a booming trading session on Tuesday as benchmark KSE-100 index crossed the level of 39,000 to mark a new record of all-time high in line with trading trend of regional markets.
KSE-100 index gained 664 points supported by banking, energy and cement stocks which attracted foreign and local players to invest in blue chip stocks after long holidays and low passive trading trend of Ramadan.
The index settled a 39,032 after touching the highest level of 39,070 during the trading session.. KSE-100 index also saw a spike in trading volumes as nearly 180 million shares exchanged hands, up 62% against yesterday and most since mid of June.
The value of trading was measured at US$ 156 million in a single session of Tuesday despite marginal profit-taking. However, institutional flows both foreign and local helped stocks carry last trading session of yesterday.
Pakistan Stock Exchange has outperformed its Asian Stock Exchange in terms of market performance in June 2016 as it left behind Sri Lanka, which fell by 10% in terms of Dollar and also Bangladesh, which fell 3%. Pakistan also outperformed Vietnam, which was up 10% in terms of growth in market capitalization, according to a report released by Topline Securities and Research.
Pakistan’s benchmark total return KSE-100 index was up 15% in terms of Dollar during by end of first half of 2016 reaching to the level of 37,784 mainly due to bullish trend in the equity market in line with Pakistan Market up-gradation from Frontier Markets (FM) to Emerging Markets (EM) by MSCI, which will be effective from May 2017.
The upgrade news was met with exhilarating response from investors as benchmark KSE-100 index gained 1,042 points (up 2.7%) on June 2015 and subsequently closed at an all-time high of 38,776 on June 2017.
MSCI Pakistan Index was up 10% while MSCI Frontier Market (FM) Index was down 3%, according to a report.
The market has come off since then because of both profit taking and also concerns of investors over BREXIT and its possible implications on Pakistan economy.
Foreigners have been net sellers during the period with selling value stood at $41 million in the first half of 2016 according to National Clearing Company Pakistan Limited (NCCPL) data. Foreigners have been net sellers (on monthly basis) since July 2015, however quantum in recent months has been on a declining trend with net buying in May 2016 with $3.6 million and Jun 2016 with $74.1 million. This led the KSE-100 index to rise by 20% since Mar 2016.
The report said that shares volumes continued to remain dry during 1H2016. Average daily volume in cash market was Rs9 billion or $87 million during the period. This compares unfavorably with average daily volume in 2015 of Rs11.4 billion or $111 million.