Pakistan Stock Exchange is on a roll as the benchmark index, KSE-100 went up for the seventh straight day. KSE-100 gained 604 points or 1.43% to settle at 33,367 on Monday.
Pakistan’s stock market had its first monthly gain last month, ending the worst monthly drop streak since 1991. The index saw a high of 818 points on the intra-day trading.
The market on Monday witnessed a bullish trend on the back of healthy buying, mainly by local investors in almost all sectors. Trading activity improved significantly as daily volumes on the ready counter increased to 392.157 million shares, the highest in over 11 months from Oct 29, 2018.
The investors’ sentiments have also continued to improve after the last week’s meeting of the industry and business leaders with the army chief where they discussed grievances regarding the economic conditions.
The buying was due to positive news of Pakistan possibly managing to avoid the Financial Action Task Force’s blacklist and staying in the grey list.
Others believe that PSX has managed to maintain this bullish momentum in the wake of Prime Minister Imran Khan’s visit to China, as investors were hopeful of positive developments for Pakistan.
The cement sector continued to remain on the investors’ radar, owing to expectations of an increase in dispatches and retail prices. Bank of Punjab was the volume leader yesterday, followed by Unity foods and K-Electric, which cumulatively added 81.5 million shares to the total volume.
However, foreign investors remained net sellers of shares worth $2.1 million. Market capitalization increased by Rs. 73 billion to Rs. 6.626 trillion. Out of a total of 422 active scrips, 321 closed in positive, only 84 were negative while the value of 17 stocks remained unchanged.
According to some market analysts, they are seeing this as a return of the value-hunters, who are betting that the economic situation is improving.