The Pakistan equities witnessed another record breaking session on Tuesday driven by institutional interest in fertilizers, oil and cement scrips on the back of strong earnings outlook. It is recently reported that PSX benchmark KSE-100 index gains 587.27 points and hit another high mark at 48,827.55 points.
Many analysts believe that foreign investment in the country has increased after the inclusion of PSX in MSCI EM index. Moreover, Karachi in the list of most dangerous cities of the world has dropped from 3rd spot to 31st, which boosted confidence among foreign investors to invest in Pakistani companies.
After a brief positive start, shares demonstrated instability and investors have withdrawn profit for a short period of time, which pulled KSE-100 index in red zone. Experts believe that notification issued by the Security and Exchange Commission of Pakistan (SECP) to stock brokers over compliance matters is also one of the causes that brought KSE-100 index in red zone. Nevertheless, the constant flows from local and foreign investors in blue chip stocks helped the shares to rebound, and sent stocks across financial, fertilizer, oil and cement sectors to new highs.
Fertilizers provided early support with Engro Fertilizers and Fauji Fertilizer hitting high, whereas, OGDC, UBL and ENGRO contributed 169 points to the surge in index, closing up 2.7%, 1.9% and 3.5% respectively. Additionally, overall volume of shares experienced a surge of 33.2% to 501 million shares, while value increased by 44% or PKR 27.1 billion. Many reports depict that 376 million shares worth PKR 18.8 billion were traded at PSX on Monday.
With the hearing of Panama case resuming today, industry experts advise investors to exercise caution while trading.