Pakistan’s benchmark index, KSE-100, was the second-best performer globally in the past month according to Bloomberg’s data and has gained 47% since reaching the lowest this year on March 25. The stocks have recovered all the losses caused by the coronavirus.
The stock market depicted a vigorous performance in the first month of FY21 with the local equity bourse closing at 39,258 points, up by 4,837 points, and translating to a return of 14.05% MoM (USD-based return of 14.78% MoM) in Jul’20, according to Arif Habib Ltd’s report.
This was the best performing month of July in 17 years (last high in 2003). Sentiments at the KSE-100 index were rejoiced by several rate cuts by the SBP (625 bps in total) which have once again brought equities to the forefront as the preferred asset class, while improvement in the domestic COVID-19 infection and recovery rates, stability in the PKR-USD parity amid monetary support from multilateral institutions, end of coronavirus induced lockdown as well as the reinstatement of pre-corona market hours, aided volumes and attracted investment in the market, said the report.
Positive contributions to the index in July were led by Commercial Banks, Cement E&P, and Fertilizers.
PSX Witnesses Traded Value of Rs. 25.7 Billion
Bulls continued their dominance over the Pakistan Stock Exchange today as by the end of the day the benchmark KSE-100 index surged to around 613 points or 1.56% to close at 39,871 points during the first working day of August.
A.A.H Soomro, managing director at Khadim Ali Shah Bukhari Securities, told ProPakistani,
Low-interest rates, FATF bills passage, low infection rate & improving tax collection is keeping the bull rejoiced. However, expect correction also. Rally is never forever.
PSX witnessed a traded value of Rs. 25.7 billion, which is a high of 728 trading sessions, last seen on 1st June 2017. Whereas the stocks went up by 1.56% today with the highest volumes in more than three years to 663 million shares including future’s 125 million shares, said a report by Arif Habib Ltd.
The sectors which caught the interest of the investors were Cement, Steel, Autos, Refineries, and the banking sector.
In all 539 million shares were traded today (Excluding Futures). Of the 372 scrips traded today, 244 advanced, 112 declined and 16 remained unchanged.
Top Points Contributors of KSE-100
Top Volumes of The Day