Business

Bull-run continues at PSX as benchmark index gains 240 points

Bull-run continues at PSX as benchmark index gains 240 points

KARACHI – The Pakistan Stock Exchange (PSX) on Wednesday continued with bullish trend as KSE 100 index went up by 240.73 points (0.73%) to close at 33439.69 points.

A total of 116,944,630 shares were traded compared to the trade of 83,612,250 shares during the previous day, whereas the value of shares traded during the day stood at Rs3.590 billion compared to Rs3.188 billion during last trading day.

Out of 351 companies, share prices of 205 companies recorded increase,132 companies registered decrease whereas 14 companies remained stable in today s trading.

The three top traded companies were WorldCall Telecom with a volume of 12,558,000 shares and price per share of Rs1.02, Lotte Chemical with a volume of 6,773,000 and price per share of Rs16.26 and Quice Food with a volume of 6,647,000 and price per share of Rs3.25.

The top advancer was Nestle Pakistan with the increase of Rs310 per share, closing at Rs6610 while Rafhan Maize was runner up with the increase of Rs200 per share, closing at Rs7400The top decliners were Bhanero Tex. XD with the decrease of Rs45.74 per share, closing at Rs869.25 and Pak Services with the decrease of Rs36.79 per share closing at Rs991.31.

In the previous week, the PSX remained lacklustre as investor participation was comparatively low amid lack of market moving triggers and investors in a state of uncertainty following the formal announcement of the Financial Action Task Force (FATF) to keep Pakistan in the grey list till Feb 2020. The benchmark KSE-100 index lost 605 points or 1.8 per cent, and settled at 33,870 points on Friday.

The volume had declined 17pc to 115 million shares, from 137.9m while traded value on the contrary had increased by 30pc to $31.3m.

According to stock market analysts, simmering Pak-India tensions and the current uncertain political situation in the country, and FATF’s warning to Pakistan to fully comply with its recommendations to curb terror financing and money laundering – all had contributed to the bearish trend in the market.

The Paris-based watchdog mentioned that Pakistan had largely addressed five of the 27 action items but expressed serious concerns with the overall lack of progress. It cautioned the country to swiftly complete its full action plan by February 2020 to stave off the blacklist.

On Oct 15, IMF Deputy Director in the Research Department Gian Maria Milesi-Ferrtti affirmed that Pakistan has remained steadfast on fiscal adjustment and has picked up economic stability as a result.

He said there were good signals on the confidence front that the exchange rate was more realistically showing the economic conditions. He added that investors were gaining confidence.

He outlined that Pakistan’s tax revenue has been increasing despite of several challenges to the state’s economy.

Earlier, economists were of the view that since the passage of the financial budget for the fiscal year 2019-20, the stringent policies would reflect themselves in what they termed “the downfall of the stock market.”