Stock market cap soars past record Rs10tr

Published May 9, 2017
KARACHI: A stockbroker talks on the phone on Monday at the Pakistan Stock Exchange.—AFP
KARACHI: A stockbroker talks on the phone on Monday at the Pakistan Stock Exchange.—AFP

KARACHI: As the bulls continued to rampage on the stock market underpinned by the exuberance over the approaching entry of the KSE-100 index in the MSCI emerging-market index, stocks rallied by nearly 1,100 points, or 2.18 per cent, on Monday to close at their new all-time high 50,936. The index beat the previous best of 50,887 points hit on Jan 27.

Less noticeable was the fact that the Pakistan Stock Exchange also saw an addition of Rs190 billion to its capitalisation which took its aggregate worth past Rs10 trillion for the first time ever.

Monday marked the third consecutive day of a spectacular rally at the stock market. Investor enthusiasm was fuelled by the upgrade of the market to the MSCI emerging-market index in a little over two weeks on June 1.

The index churned an overall volume of 326 million, up from 308m shares traded on Friday. The Monday volume was equal to the 10-day moving average of 324m shares. Traded value rose to Rs20.8bn from Rs18.8bn. Another significant feature of trading was net buying of shares worth $3.30m by foreign investors.

Investors’ interest remained centred on the 27 stocks that are likely to be eligible to be added to the MSCI index. The financial sector saw the three MSCI upgrade hopefuls — Habib Bank Ltd, United Bank Ltd and MCB Bank — spike to hit their ‘upper circuit’.

Adding to that the gains of index heavyweight Oil and Gas Development Company and Lucky Cement, the five MSCI hopefuls added 552 points to the index.

Analysts at Intermarket Securities said that among refineries only National Refinery Ltd rose 2.35pc, outperforming the KSE-100 index, while oil marketing companies underperformed the benchmark index despite a buoyant close.

Cements came into the limelight after announcement of cement despatches figures.

The textile sector continued its winning streak with Nishat Mills Ltd rising by 4.09pc, Nishat Chunian Ltd 2.47pc, Gul Ahmed Textile Mills Ltd 4.98pc and Gadoon Textile Mills Ltd 3.28pc.

Published in Dawn, May 9th, 2017

Opinion

Populism and Pakistan
Updated 14 Jun 2021

Populism and Pakistan

The country’s politics is not immune to being shaped by regional and global populisms in a myriad of ways.
Domestic workers
Updated 14 Jun 2021

Domestic workers

A bill to protect domestic workers is awaiting Senate approval.
FATF compliance
13 Jun 2021

FATF compliance

Pakistan has made serious efforts to address the deficiencies in its CFT/AML regime because of FATF pressure.

Editorial

Power shortages
Updated 14 Jun 2021

Power shortages

It is high time that governance and structural reforms were introduced in the energy sector.
14 Jun 2021

Suicide in Thar

THARPARKAR is an appropriate case study for examining the factors that lead some people to the desperate, final act...
14 Jun 2021

Water woes

THIS past week saw a discussion on a water management system that, if properly implemented, should go some way...
Covid strategy
Updated 13 Jun 2021

Covid strategy

It is critical for govt to demonstrate to the public how badly health, business and education have suffered during the pandemic.
13 Jun 2021

Women in Balochistan

THE Balochistan government seems to be taking steps to improve women’s integration into society and the workforce...
13 Jun 2021

Deprived of cricket

THE federal cabinet has disallowed PTV to enter into an agreement with an Indian company for broadcast rights to...