Daily Stock Report: Index Gains 1120 Points Despite Political Uncertainty

Pakistan Stock Exchange witnessed a bullish trend today, as the KSE-100 Index gained 1120.04 points or 2.52% to close at 45,643.25 points amid political uncertainty.

The index tested the day’s high at 45669.06 points. The day’s low of 44517.06 came towards market close. Overall the volumes were better than Monday’s closing which were the lowest in three years. 145.65 million shares were traded, While in KSE 100 index only 77.50 million shares were traded with a total worth of nearly Rs 7.10 billion.

The Panama Papers case implementation bench after conducting the second day of hearing today was adjourned proceedings till Wednesday (tomorrow). The three-member special Supreme Court bench observed on Tuesday that it would examine all the material and then decide on disqualifying the premier or sending the matter to an accountability court which increased the confidence of some the investors.

The local equity market on the back of above political uncertainty has come off by 5% during the current month of July and down 16% from peak seen on May 24, 2017. This is one of the steepest falls in last 12-years.   Pakistan’s stock market activity dropped to the lowest level in 5 years yesterday with all eyes on case against PM Sharif.

Top contributors to the index were UBL, LUCK, OGDC, ENGRO and HUBC.

ENGINEERING was the top traded sector with total traded volume of 18,695,900 shares. It was followed by COMMERCIAL BANKS with a total traded volume of 17,464,600 shares and TECHNOLOGY & COMMUNICATION sector with a total traded volume of 15,530,500.

Shares of 364 companies were traded. At the end of the day, 291 Stocks closed higher, 64 declined while 9 remained unchanged.

TRG Pak Ltd was the volume leader with 11.25 million shares, gaining Rs 1.79 to close at Rs 37.79. It was followed by K-Electric Ltd with 8.90 million shares, gaining Rs 0.08 to close at Rs 6.69, Aisha Steel Mills with 7.19 million shares, gaining Rs 0.59 to close at Rs 19.51 and Engro Polymer with 6.91 million shares, gaining Rs 1.67 to close at Rs 35.64.

Top advancers of the market were:

Top decliners of the market were:

  • Its seems that the case may not get a decision in near future since:
    1) SC doesn’t intend (as it seems) to use article 62 & 63 as it may open a new Pandora box of screening every parliamentarian.
    2) Govt may include (as extreme measure) Judges, Generals and Beurocrates in article 62 & 63 through law making which will be deadly for Judiciary too (believe me, no one is clean enough to pass the sadiq & amin test).
    3) China influence not to destabilize the system since it has made huge investments here.
    4) It would not be good for democracy. To let NS take natural death like PPP.

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