. KARACHI:
Stocks staged a remarkable rally on Monday, surging over 800 points in intra-day trading on back of assurances from Crown Prince of Abu Dhabi to help bring Pakistan out of financial crisis.
The financial package worth $3 billion and discussions regarding an oil credit facility boosted investor confidence, who took to buying in droves. The renewed buying led the index to power past the 38,000 mark on Monday.
At 14:17, the KSE-100 index – a benchmark for market performance – was up 891.18 points or 2.37% to stand around 38,438.67 points.
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Besides, statement by Fitch Solutions that Pakistan’s central bank would keep interest rate unchanged at 10% in the next monetary policy statement due this month and uptrend in global markets also attracted investors taking fresh bets, said analysts.
PSX attracted renewed buying on uptrend in “global markets, UAE support and Fitch statement on interest rate”, Topline Securities CEO Muhammad Sohail told The Express Tribune.
JS Research Head of Equity Sales Syed Atif Zafar said the visit of Crown Prince of Abu Dhabi Sheikh Muhammad bin Zayed, Al Nahyan on Sunday, which was first of its nature in the last 12 years, spilled over positive sentiment at the PSX.
During the visit, the Prince matched Saudi Arabia’s financial package of $6 billion, as both the friendly counties offered $3 billion each in cash to stabilise Pakistan’s foreign currency reserves and promised oil and gas supplies worth another $3 billion each on differed payments.
He added that renewed buying was due in the market since it had gone under the oversold territory last week.
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Topline Securities’ analyst Nabeel Khursheed added that an improvement in domestic political scenario (PTI government versus PPP leaders) also aided PSX to exhibit better performance.
He said the market may see profit-taking in concluding hours. “It would conclude with around 500 plus points,” he said.
IT and telecom, chemical, bank and cement stocks were dominating the volume chart.
Source: https://tribune.com.pk/story/1883185/2-kse-100-gains-800-points-intra-day-trading-2/
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