Normalcy returns to stock market amid budget pessimism

KARACHI: The Pakistan Stock Exchange (PSX) surged on Tuesday just a day after the stock market plunged due to the economic condition and the announcement of the federal budget.

The benchmark KSE 100 index witnessed a gain of 229.37 points (0.68%) and closed at 34,053.88 points. The bourse gains 237.24 points in early trading to regain the 34,000 mark. The indices slipped soon afterwards but rebounded and maintained the upward trajectory for the rest of the day.

Meanwhile, the KSE 30 index also witnessed a gain of 104.63 (0.71%) and closed at 14,768.24 points. The total volume of scripts traded at the lower bourse was 45.044 million.

The KMI 30 index also surged by 516.39 points (0.96%) and closed at 55,144.51 points, while the All-Share Index jumped by 165.33 points (0.68%) closing at 24,388.61 points.

The top advancer were Unity Foods (UNITY +0.85%), Agritech Limited (AGL +19.53%), TPL Corp (TPL 24.57%), Lotte Chemical (LOTCHEM +0.10%), Hum (HUMNL +4.96%), and Hascol (HASCOL +0.80%).

Net outflow of US$ 5.12 million was recorded on June 15, 2020. The highest contributor to the KSE 100 index was the oil and gas sector (+78.81 points). The highest change of market capitalization was in the refinery sector (4.13%). The total volume of shares was 217.37 million.

Normalcy seemed to have been restored at the stock market after a blood bath of Monday that saw the stock market plummet by 786.72 points. Many investors expressed disappointment over the federal budget 2020-21 and dumped stock, dragging the stock market further down.

Investors were dismayed over the lack of relief or other incentives in the budget. The bearish sentiment and pessimism prevented the stock market from any gains as investors resort to profit booking.