PSX observes bullish trend over increased investor optimism

KARACHI: The Pakistan Stock Exchange (PSX) witnessed an impressive growth on Tuesday of over 300 points after a dismal week of lacklustre trading and lack of triggers.

The benchmark KSE 100 index recorded an increase of 319.23 points (0.96%) and closed at 33.603.02 points. The indices shot up by 123.88 points right after trading resumed and eventually gained 248.92 points before it lost track. The bourse quickly recovered and went on an upward trajectory before trading was suspended. The total volume of shares increased to 149.317 million valued at Rs6.14 billion.

Meanwhile, the lower bench KSE 30 index also increased by 185 points (1.27%) and closed at 14,792.93 points. The total volume of scripts increased to 88.822 million. The top active stock remained MLCF (6.74%), UNITY (-2.28%), FCCL (6.61%), WTL (-5.00%), HASCOL (1.01%), TRG (2.59%), POWER (6.60%), DGKC (6.91%), CRTM (7.41%) and KAPCO (2.48%).

The stock market edged up yesterday and gained sixteen as increased investor mood which continued for a second day. Investors are expecting a further decline in interest rate by the State Bank of Pakistan. The central bank has already reduced the policy rate to nine percent but further cuts are being expected due to the adverse economic situation.

Investors are also looking forward to the MSCI review which could downgrade Pakistan from an emerging to a frontier market. Hence, many investors are taking the opportunity to accumulate stocks to short term gains at the bourse. Stock have remained flat for much of the preceding week amid growing uncertainty of the coronavirus pandemic.