Karachi: Due to many positive triggers, bulls kept their hold on the Pakistan Stock Exchange on Tuesday, adding nearly 300 points to the benchmark KSE-100 index. Investors poured new money into the market in response to a decline in inflation to 8.4% in the first month of the continued fiscal year (July).
In addition, the rally was bolstered by the declaration of Adviser to the Prime Minister on Commerce Abdul Razak Dawood that exports reached an all-time high of $2.35 billion in July 2021. Similarly, in July, record-high gasoline sales by oil marketing corporations suggested a resurgence of economic activity in the country and boosted stock market investor interest. Last month, sales of two major Japanese automakers in the country reached new highs.
These upbeat news stories provided a bright picture of Pakistan’s economy, prompting a flurry of buying at the stock exchange. As a result, the macroeconomic indices are likely to improve further in the current fiscal year, according to market participants.
The rupee’s recent weakness, which saw it fall to Rs163.89 against the greenback on Tuesday, did not affect the bourse’s upward trend because market participants expected further export earnings in the coming months.
Earlier in the day, the market began with a jump and continuously rose throughout the day. However, the gains were inflated when the upswing advanced approaching the closing. The benchmark KSE-100 index ended the day with a gain of 305.07 points, or 0.64 percent, to 47,758.32. The market resumed its uptrend with an increase in trade volumes, according to Arif Habib Limited’s report. During the session, the benchmark index gained 355 points and finished 305 points higher.
The index was helped by the oil and gas marketing, banking, refinery, technology, and textile sectors, while the exploration, production, and steel sectors were under pressure.
According to the report, “optimism grew as a result of rupee depreciation, which will improve revenues in the textile, technology, and exploration and production sectors, as well as impending financial results.”
The Pakistan stock market sustained its strong momentum, reaching a high of +355 points and finishing 305 points higher at 47,758, according to JS Global analyst Neelum Naz. The top contributors to the entire volume, accounting for a total of 133 million shares, were WorldCall Telecom (+4.3 percent), Telecard Limited (+7.4%), Byco Petroleum (+2.4 percent), TPL Corp (+1.8 percent), and Citi Pharma (+5.5 percent).
WorldCall Telecom (+4.3 percent ), Avanceon (+0.6 percent ), TRG Pakistan (+2.9 percent ), NetSol (+2.2 percent ), and Telecard Limited (+7.4 percent ) all closed in the positive territory, contributing for 27 percent of total traded volume.
Hascol Petroleum (+13.7 percent) closed at the top of the oil marketing firms’ stock market.
In the news, the government’s overall FY22 export target of $40 billion drew attention to the textile industry.
“In the future, we advise investors to see any downside in the cement, steel, technology, and textile sectors as a buying opportunity,” the analyst said.
Overall trading volume increased to 443.2 million shares, up from 252.3 million on Monday. During the day, Rs16.2 billion worth of shares were traded. A total of 482 companies’ stock was exchanged. As a result, 335 stocks had gained ground, 120 had lost territory, and 27 had remained unchanged by the end of the day.
With 36.4 million shares traded, WorldCall Telecom was the most active, gaining Rs0.15 to settle at Rs3.64. Telecard Limited came in second with 29.5 million shares, up Rs1.18 to Rs17.04, and Byco Petroleum came in third with 29.4 million shares, up Rs0.24 Rs10.32.
Read more with EL news: Gwadar Port is linked to the socio-economic growth of Baluchistan