business
Monday Nov 29 2021
By
BDBusiness Desk

PSX: Benchmark index rallies over 1,200 points on Saudi support package

By
BDBusiness Desk
— AFP/File
— AFP/File

  • Investor optimism about Saudi package was reflected at the bourse as players took fresh positions.
  • The movement of benchmark KSE-100 index displayed a much stable upward march.
  • At close, the benchmark KSE-100 index soared 1,215.89 points, or 2.76%, to close at 45,330.05.


KARACHI: Bullish activity dominated trading at the Pakistan Stock Exchange (PSX) on Monday as widespread uncertainty, which enveloped the market regarding the International Monetary Fund (IMF) programme and $3 billion funds from Saudi Arabia, vanished gradually and a clear picture emerged.

The movement of benchmark KSE-100 index displayed a much stable upward march, which reflected the confidence gained by investors after Adviser to Prime Minister on Finance and Revenue Shaukat Tarin visited the stock market on Friday.

Investor optimism about the Saudi package was reflected at the bourse as market players took fresh positions on the back of an agreement that was signed between the State Bank of Pakistan (SBP) and the Saudi Fund for Development (SFD).

Also fuelling the bullish sentiment was a decline in international oil prices as the benchmark KSE-100 index once again surpassed the 45,000-point mark.

Benchmark KSE-100 index intra-day trading curve. — PSX data portal
Benchmark KSE-100 index intra-day trading curve. — PSX data portal

At close, the benchmark KSE-100 index soared 1,215.89 points, or 2.76%, to close at 45,330.05.

A report from Arif Habib Limited in its post-trading commentary stated that the benchmark KSE-100 index witnessed a bull-run as it gained more than 1,200 points in intraday trading crossing the 45,000-point mark.

The brokerage house stated that investors’ confidence was lifted by the cabinet approval to revive Saudi Arabia's $3 billion support package for Pakistan in safe deposits and $1.2 billion worth of oil supplies on deferred payments.

“Major dip in crude oil prices created positive momentum in the market despite the emergence of a new variant of COVID-19,” it stated, adding that the perception of investors towards the last leg of foreign selling spree being completed last week created opportunity for intra-day traders.

Sectors contributing to the performance included commercial banks (+283 points), cement (+211 points), exploration and production (+139 points), fertiliser (+100 points) and oil marketing companies (+76 points).

Shares of 358 companies were traded during the session. At the close of trading, 263 scrips closed in the green, 76 in the red, and 19 remained unchanged.

Overall trading volumes dropped to 268.2 million shares compared with Friday’s tally of 289.8 million. The value of shares traded during the day was Rs10.9 billion.

Fauji Foods was the volume leader with 14.8 million shares traded, losing Rs0.31 to close at Rs0.82. It was followed by TPL Properties with 14.7 million shares traded, gaining Rs2.57 to close at Rs45.80, and WorldCall Telecom with 13.7 million shares traded, gaining Rs0.01 to close at Rs13.7.