The Pakistan Stock Exchange closed Thursday deep in the green, with the benchmark KSE-100 index gaining 704 points, or 1.44 per cent, to break through the 49,000 points barrier and close at 49,696.
Jumping more than 300 points soon after trading commenced, the index continued on an upward trajectory throughout the day, moving within a narrow range to record its highest single-day gain in months.
“The KSE-100 continued its bull run, posting the best single day gain since Nov 1, 2016 amid rumors that a new leverage product will be launched soon,” said Hammad Aman, analyst at Topline Securities.
“CPI inflation at 4.22% was announced today, which was better than analyst expectations. This added to the positivity in the market,” he added.
148.3 million shares of indexed companies changed hands in the session, with a total worth of nearly Rs12.8 billion.
Overall, 398.5m shares were traded on the PSX, with a total worth of nearly Rs17.7bn. Volumes were 70pc higher, while values rose 22pc from the previous day.
401 companies were traded on the exchange, of which 267 gained in value, 115 declined and 19 remained unchanged.
Volumes were led by:
Lotte Chemical: 58.3m shares traded (+9.24pc);
K-Electric Ltd.: 29.4m shares traded (+3.54pc);
Aisha Steel Mill: 20.6m shares traded (-2.28pc);
TRG Pak Ltd.: 19m shares traded (+2.10pc); and,
Azgard Nine: 18.8m shares traded (+11.21pc).
“The resolution of broker/regulator issues regarding in-house/badla financing, along with a consensus being reached on a new margin product boosted investor sentiment and participation,” Fahad Qasim said in his review note.
“Consequently, buying was seen across the board, with index heavyweights HBL Bank (+3.08pc), Lucky Cement (+1.72pc), United Bank (+1.43pc), MCB Bank (+1.58pc) and Searle (+3.7pc) cumulatively adding 238 points to the index,” he added.
Nabeel Haroon, an analyst at JS Global, said: “Positivity in the market can be attributed to the Securities and Exchange Commission of Pakistan’s assurances that the in-house financing position of brokerage houses is no longer a matter of concern and they are taking all the necessary regulatory measures to protect investors’ interest.”
“Moving forward, we expect the bullish trend to continue, and recommend investors to see any intraday dips as an opportunity to accumulate further positions,” he added.
Another analyst concurred with this assessment. “We see this newfound momentum to continue in the near-term, with the benchmark KSE-100 Index likely re-testing previous highs above the 50,000 level,” Ali Raza said.