PSX welcomes 2020 with big bang

The KSE-100 cheered in the New Year with a gain of 665pts (+1.6%) to close at 41,400pts. Volumes clocked in at 237mn shares, more than twice as much as yesterday, although this was largely due to extraordinary volumes in KEL (119mn shares). Retail investors continued to strongly engage, while local institutional activity also picked up, especially towards day end when the Index depicted a surge.

The large banks recouped their losses of the previous few days, while the Fertilizer and Cement sectors remained in the limelight with channel checks suggesting good sales data for December.

Stocks that added the most Index points today were ENGRO (+2.6%), HBL (+3.5%) and UBL (+4.1%), together adding 225pts. Other prominent gainers included KEL (+8.9%), PSX (+6.2%) and FFBL (+5.1%). Drag emanated from PAKT (-4.9%), HUBC (-0.5%) and SHEL (-5.0%). Other than KEL, volumes were dominated by UNITY (26.6mn shares) and FFL (17.5mn shares). Traded value was led by KEL (USD 3.7mn), ICI (USD 3.0mn) and UNITY (USD 2.8mn).

2020 has commenced in an encouraging fashion! While risks remain (e.g. on FATF and the timing & pace of monetary easing), macroeconomic reforms are delivering results and the medium-term outlook remains positive. This should keep the locals interested and, if foreign investors turn more aggressive buyers compared to 2019, the Bull Run can extend. Our view is to stay invested. (Courtesy: Intermarket Securities Limited.)

Share:
Posted in Uncategorized.

Leave a Reply

Your email address will not be published. Required fields are marked *