Pakistan stock exchange gains 504 points after foreign investment
KSE-100 index settles at 34,027.70, making a 63-session high
- The confidence of investors improved by State Banks’s governor statement in which he indicates macroeconomic stabilization and external sector success.
- The shares have increased 10pc to 261.1m, from 237.7m a day ago.
The stock exchange index, within a day, has touched its high by 523 points. It has been made possible by monetary funds reserved roles with the overseas investors, former buying stocks worth $2 million and $1.90 million through foreign outflow.
The reason behind the purchasing spree is the stocks decreased in exchequer yields in the recent Treasury bill auction. The auctions three, six and twelve months’ exchequer yields fell to four, 29, and 38 basis points respectively.
Moreover, bond yields further witnessed a downward trend in the secondary market. It indicates a possibility wherein the next couple of months, rates will further cut in monetary policy. Among banks, Habib, United, and MCB closed in green.
After the statement of State Bank of Pakistan’s governor, the confidence of investors has improved. Further, when he indicated macroeconomic stabilization and external sector success. Foreign investors avoided previously as they were concerned regarding FAFT review and the political situation.
The activity was observed everywhere but the main contributors were commercial banks and cement. With 15 points, banks were the biggest contributors to the index. 74 points added by production, whereas the expected increase in cement price per bag kept alive optimism of investors.
The shares have increased up to 10pc, from 237.7m from 261.1m a day ago. Furthermore, trade value also increased by 32pc, from 40.9m to 54m. Stocks that contributed significantly included Lotte Chemical, Pakistan international Bulk Terminal, K-Electric, Unity Foods, and Engro Corporation, forming 33pc of the total turnover.
Major gainers were Lucky Cement, up 3.99pc, United Bank 2.06pc, Habib Bank 1.52pc, Pakistan Tobacco 4.90pc, Hub Power 1.94pc, Mari Petroleum 5pc, Habib Bank 0.89pc, Oil and Gas Development Company 1.57pc, MCB 1.60pc, Dawood Hercules 2.74pc, and Engro Corporation 1.19pc.
From Zero To Hero: Global Investors Are Piling Into Pakistan’s Local-Economy Bonds Like Never Before-Bloomberg
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