Capital market gains 770 points on dollar depreciation


KARACHI: The benchmark KSE-100 index at Pakistan Stock Exchange (PSX) made third consecutive gain on Monday and increased by 770 points on dollar value reduction.
The Index closed at 43,556 points as against 42,786 points of Friday, showing an increase of 770 point or 1.8 percent over previous trading day.
Analysts at Arif Habib Limited said that this is the third consecutive increase after the holding of elections, taking the market to a cumulative increase of around 2200 points.
Today the appreciating rupee and declining parity with USD captivated investors and each slide in Pak Rupee made the sectors depending on import of raw materials attractive. Cement, Autos, Pharma were in the limelight and most of the scrips in these sectors traded at and near upper circuits.
PREMA (At-Tahur Limited) debuted today with Upper Cap and increasing demand from investors to buy at +2 days upper circuit, however, little volume exchanged hands.
Key drivers of index included HBL, LUCK and PSO, with expectation of healthy results on PSO for the full year. With certainty of PTI forming the coalition, the euphoria is expected to end soon and more focus towards issues is likely to take significance, which is likely to give a breather to rising trend in index.
Sectors contributing to this increase include Cement (+158 points), Banks (+98 points), E&P (+82 points), O&GMCs (+57 points) and MARI (+47 points).
Volumes declined slightly to 377.9 million shares from 385.5 million shares the other day (-2 percent DoD). Average traded value increased by 7 percent to reach $117 million as against $109.3 million.
Stocks that contributed significantly to the volumes include PIBTL, BOP, KEL, EPCL and PAEL reflecting 19 percent of total volumes.

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