PSX continues to push up index on Thursday

The strong start to 2020 continued today, with the KSE-100 gaining 1,081pts (+2.6%) to close at 42,481pts. Volumes continued to be exuberant, up 19%d/d to 282mn shares. With political noise fading away into the background, investor attention turned to the ongoing macroeconomic recovery, an improving outlook for corporate profitability, and still-attractive valuations (c 7x on P/E). Local institutional buying is making its presence felt!

Stocks that added the most Index points today were HUBC (+5.

0%), HBL (+3.2%) and ENGRO (+3.3%), together adding more than 260pts. Other prominent gainers were PTC (+7.4%), PSX (+5.7%), LUCK (+5.0%) and PSO (+5.0%). Losing stocks were few and far between, and included STJT (-5.0%), GSKCH (-1.4%), KTML (-1.2%) and SHEL (-1.2%). The top three volume leaders were KEL (46.8mn shares), BOP (27.8mn shares) and FFL (21.4mn shares), while traded value was led by PSO (USD 9.5mn), PPL (USD 7.4mn) and ENGRO (USD 6.1mn).

2019 had commenced with a similarly blazing start and quickly crossed 42,000pts but this merely proved to be new year enthusiasm, with the Index failing to sustain the early highs and falling down to c 28,000pts by mid-August. We feel that the ongoing rally is more sustainable – its steep gradient can certainly lead to profit taking episodes but the Index is expected to stay directionally positive, over the next few months at least. (Courtesy: Intermarket Securities Limited).

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