Market watch: Bulls toss KSE-100 above 45,000 points

Bullish momentum prevailed at the Pakistan Stock Exchange on Tuesday as market participants were optimistic about the improving economic situation, sparking hopes for the revival of International Monetary Fund (IMF) loan programme

The market staged a spectacular rally, adding 504 points to the benchmark KSE-100 index

It extended the bull run for the sixth consecutive session and tossed the index above 45,000 points

Bulls were seen dominating the market throughout the day, as the development regarding the Finance (Supplementary) Bill 2021 coupled with December’s export figures depicting contraction in trade deficit bolstered investor interest

Earlier, trading kicked off with a rally as investors cherry-picked stocks at attractive valuations, mainly in the technology sector

Later, the index, despite recording minor ups and downs, managed to rise at a steady pace

In the final hour, there was across-the-board profit-taking, which wiped off some of the gains

At close, the benchmark KSE-100 index recorded an increase of 503

95 points, or 1

12%, to settle at 45,390


A report of Arif Habib Limited stated that bullish momentum continued as the confidence of investors rose due to improvement in economic numbers

Trade deficit declined to $4

1 billion during December 2021 along with a drop in food inflation

The market opened in the green zone with traders placing aggressive bets on high beta stocks, said the report

Tech stocks made the journey to the north as fresh allocation of funds were made in order to achieve alpha returns

In the last trading hour, across-the-board profit-taking was witnessed mainly in cyclical stocks

The market continued to trade sideways, witnessing hefty volumes in third-tier stocks, the report said

Sectors contributing to the performance included technology (+112 points), cement (+72 points), exploration and production (+59 points), power (+42 points) and pharmaceutical (+36 points)

JS Global analyst Neelam Naz said that the KSE-100 index kept the new year euphoria intact and managed to close at 45,391, gaining 504 points

Major volume contributors were TRG Pakistan (+4

3%), WorldCall Telecom (+4

8%), Telecard Limited (+6

8%), First National Equities (+3

7%) and Pakistan Refinery (+7%)

The refinery sector was in the limelight following news reports about refineries getting substantial orders for the next few months, the analyst said

Major positive contributors to the index were TRG Pakistan, Systems Limited, Hub Power Company, Unity Foods and Lucky Cement

“Going forward, positive news about the IMF will create more stability in the market,” she said

“We recommend investors to avail any dips to accumulate technology, oil and gas exploration, banking and cyclical sector stocks

” Overall trading volumes rose to 375

99 million shares compared with Monday’s tally of 195

2 million

The value of shares traded during the day was Rs12

8 billion

Shares of 376 companies were traded

At the end of the day, 266 stocks closed higher, 86 declined and 24 remained unchanged

Unity Foods (R) was the volume leader with 25

7 million shares, gaining Rs0

49 to close at Rs1


It was followed by TRG Pakistan with 23 million shares, gaining Rs5

07 to close at Rs123

39 and WorldCall Telecom with 22

1 million shares, gaining Rs0

1 to close at Rs2


Foreign institutional investors were net buyers of Rs957

36 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan

Date:05-Jan-2022 Reference:View Original Link