KSE-100 index reverses downward trend, gains 229 points

• Bullish momentum at PSX comes on the back of a rise in international crude oil prices.
• Cement, fertiliser, steel and technology sector stocks contributed positively to the index.
• Shares of 605 listed companies were traded among those 309 stocks closed in the green.

KARACHI: The Pakistan Stock Exchange (PSX) reversed the downtrend that began last week, however, the Delta coronavirus variant made some investors reassess how the economy could perform in the coming months.

A raft of economic from inflation to current account deficit suggests that without fresh catalysts, the market could be in for a pause or even a reversal. Market players are also eyeing the rupee-dollar parity and economic impact of the measures taken by the government to curb the spread of the COVID-19 virus.

The benchmark KSE-100 index recorded an increase of 229.17 points or 0.49% on the first day of the trading week to close at 47,365.70 points.

Trading volume clocked in at 382.6 million shares compared to 382.4 million shares traded on Friday [August 27]. The average traded value declined by 8% to reach $74.3 million against the $80.1 million value recorded in the previous session.

A report of Arif Habib Limited stated that the market performed well after closing the rollover week, as the index added a total of 332 points during the session and closed +229 points.

“The ascent in international crude oil prices, due to hurricane IDA, helped propel oil and gas chain, particularly exploration and production stocks,” it said, adding that the power sector saw Hubco coming to the fore on the back of declaration of healthy dividends.

Besides, cement, fertiliser, steel and technology stocks contributed positively to the index. Banks, autos and the textile sector saw continued profit booking.

Among scrips, Byco Petroleum led the table with 42.9 million shares, followed by Ghani Global Holdings (29.8 million) and WorldCall Telecom (26.7million).

During the session, shares of 605 listed companies were traded. At the end of the session, 309 stocks closed in the green, 200 in the red and 96 remained unchanged.

Sectors contributing to the performance included banks (-109 points), power (+76pts), refinery (+43 points), exploration and production (+42 points), cement (+41 points) and fertiliser (+35 points).

Major gainers were Hubco (+75 points), Engro Corporation (+31 points), Oil and Gas Development Company (+26 points), Pakistan Petroleum (+22 points) and TRG Pakistan (+17 points).

Major losers were Meezan Bank (-49 points), Habib Bank (-38 points), MCB (-14 points), and UBL (-10 points).