KARACHI – After last week’s abysmal performance, the Pakistan Stock Exchange (PSX) bench mark shares index bounced back sharply on first trading day by rallying 1,566 points (up 3.2pc) to close above the 50,000 points level.
Last week’s sharp dip reopened attractive valuations, as evident by today’s across the board buying activity with early reports suggesting strong institutional support. While the nature of this bounce may point to a relief rally or dead cat bounce, performance in subsequent sessions would be a key to sustaining a reversal, stated analyst Adnan Sami Sheikh.
Top 10 index point leaders were HBL (gain 4.2pc), UBL (5pc), ENGRO (4.8pc), LUCK (3.5pc), PPL (3.4pc), DGKC (4.9pc), SNGP (5pc), DAWH (4.9pc), MCB (2.6pc) & BAHL (5pc), with combined contribution of 706 points. On the sector front, Banks added 419 points, followed by Cements (209 points), Fertiliser (177 points) and E&P’s (128 points).
Sui Southern Gas (SSGC) reported better than expected FY16 result (LPS Rs6.7), which led the stock to its upper limit (up 5pc). Early session pressure remained in oil stocks on weak global crude prices and falling global equities. Subdued foreign selling and strong quarter-end corporate earnings played a catalyst role in record surge at PSX, analyst Ahsan Mehanti said.
On the back of news of deferment of decrease of duty on imported cars stocks in Auto sector witnessed a rally where PSMC, INDU and HCAR closed on their respective upper circuits. The decrease in GST to 5pc from 16pc for construction industry in Punjab was also taken as a positive stimulus for Cement and Steel sector. DGKC (rose 4.94pc) in Cement sector closed close to its upper circuit while LUCK (up 3.47pc), FCCL (4.41pc), MLCF (4.96pc) and PIOC (2.90pc) also heavily contributed to the index, said analyst Arhum Ghous. Market participation was mixed, as volumes increased 15 percent to 255 million shares, while traded value fell by 12 percent to Rs13.9 billion/$132 million.