KARACHI: The stock market gained 614 points on Monday owing the decision of the central bank for not to hold regular meeting of monetary policy committee.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 38,221 points as against 37,608 points showing increase of 614 points.
Analysts at Arif Habib Limited said that following SBP’s decision to defer Monetary Policy for next 2 months, gave banking scrips the much needed impetus to rally. Anticipation of further rate cut died with SBP’s decision and investors view this decision as a signal of interest rate bottoming out.
Banking sector scrips, especially HBL rallied and traded near upper circuit after posting significant earnings last Friday.
UBL is scheduled to post financial results in the first week of August, which gave another reason for the banks to perform.
Besides Banks, Cement sector rebounded after adjusting to selling pressure in the outgoing week.
Resultantly, Index posted gains of 684 points and closed the session +614 points. Technology sector led the volumes with 39.4 million shares, followed by Banks (39.1 million) and Cable (30.2 million).
Among scrips, PAEL topped the volumes with 28.9 million shares, followed by TRG (20 million) and PRL (18.4 million).
Sectors contributing to the performance include Banks (+283 points), Cement (+75 points), Technology (+47 points), E&P (+45 points) Fertilizer (+45 points).
Volumes increased from 266.5 million shares to 288.1 million shares (+8 percent DoD). Average traded value increased by 24 percent to reach US$ 79.5 million as against US$ 64 million.
Stocks that contributed significantly to the volumes include PAEL, TRG, PRL, MLCF and FFL, which formed 31 percent of total volumes.
Stocks that contributed positively to the index include HBL (+98 points), BAHL (+51 points), LUCK (+39 points), MEBL (+36 points) and TRG (+30 points). Stocks that contributed negatively include DAWH (-10 points), ATLH (-4 points), MUREB (-3 points), KAPCO (-2 points), and ICI (-2 points).