The unified Pakistani bourse, Pakistan Stock Exchange (PSX), on Monday successfully entered the New Year by continuing its upward trend-a massive gain of 517 points to cross the 48,000 level for the first in its history. The PSX benchmark KSE-100 index closed up 433.31 points at an all-time high of 48,240.28 points against 47,806.97 points that it recorded in the last trading session.
The stocks closed bullish amid institutional interest in fertilizers, banking and oil scrips on investor speculations ahead of the earnings season,” Ahsan Mehanti, an analyst at Arif Habib Corporation, said.
Many analysts believe that foreign investment in the country has increased after PSX’s inclusion in MSCI EM index accompanied by registration of Chinese companies in coming few months as they have bought 40% shares of Asia’s best-performing stock market.
Out of 423 active companies in the trading session, 258 ended their trading session in the positive territory and 145 in negative zone, while 20 remained unchanged. Faisal Bilwani of Elixir Securities commented: “Equities welcomed the New Year with fireworks, as benchmark KSE-100 Index galloped past 48,000 to a new record high.”
Fertilizers provided an early support, as they came in the limelight over positive confirmation of reduction in gas prices; Fauji Fertilizer (up 3%) is steadily recording high trading volumes since July last year. Oil marketing companies also attracted attention, as Pakistan State Oil closed positive (up 2.4%), while Hascol Petroleum (up 5%) hit the upper price limit on bets of inventory gains in the wake of rising global crude prices.
Significant turnover was also recorded in K-Electric, Dost Steels Ltd, Summit Bank, Bank of Punjab, Pak Elektron, Aisha Steel Mill, Fauji Cement, TRG Pakistan Ltd, Engro Polymer and Dewan Cement.