KSE-100 rallies over 500 points on earnings expectation

• Expectations about quarterly earnings announcements helps bourse maintain its bullish momentum.
• KSE-100 index surges 1.20%, to close at 45,887.63 points.
• Shares of 383 companies were traded during the session.

KARACHI: The Pakistan Stock Exchange (PSX) closed higher on Monday with the biggest boosts from the technology and banking sectors as investors appeared to bet on solid quarterly earnings.

The bullish rally in the stock market was attributed to an improvement in the economic indicators, especially a surge in textile exports, a slight month-on-month reduction in the trade deficit as well as expected approval of the supplementary finance bill, which is a prior condition of the International Monetary Fund (IMF).

The positive market activity was fuelled by a bullish spell in global equity markets coupled with certainty in international crude oil prices.

Moreover, expectations about major quarterly earnings announcements by the corporate sector helped the bourse to maintain its bullish momentum.

At the close, the benchmark KSE-100 index surged 541.98 points, or 1.20%, to close at 45,887.63 points.

Topline Securities in its post-market commentary noted that investors welcomed the new week on a bullish note where the benchmark KSE-100 index remained mostly in the green zone throughout the day.

“Initially, the market opened on a negative note on the back of news regarding a further delay in the IMF programme; however, across the board buying has been witnessed in the blue-chip stocks ahead of the commencement of result season,” the report said

Shares of 383 companies were traded during the session. At the close of trading, 243 scrips closed in the green, 112 in the red, and 28 remained unchanged.

Overall trading volumes rose to 356.96 million shares compared with Friday’s tally of 242.26 million. The value of shares traded during the day was Rs11.87 billion.

Unity Foods was the volume leader with 33.21 million shares traded, gaining Rs0.41 to close at Rs2.43. It was followed by WorldCall Limited with 30.07 million shares traded, gaining Rs0.04 to close at Rs2.32, and TRG Pakistan with 25.78 million shares traded, gaining Rs3.41 to close at Rs109.17.