KARACHI - Pakistan Stock Exchange staged strong recovery on Tuesday and closed at the highest-ever level after political uncertainty eased. The benchmark 100-share index rallied by 1,406 points, which was the single biggest rise in a single day in its history, and closed at 41,299.87 points. PTI chief Imran Khan’s decision to call off protest in Islamabad strengthened bull-run at the stock market, triggering across-the-board late session rally. Abraaj’s affirmation on strategic sale of K-Electric, strong corporate results in the fertiliser, oil and auto sectors played a catalyst role in record high close, dealers said.
Meanwhile, inflation for the month of October clocked in at 4.21% YoY, which was higher than expected, resulting in a strong rally in the banking sector as speculation increased over interest rate hike in the upcoming monetary policy. Top index movers of the aforementioned sector were HBL (up 3.50%) and UBL (3.92%), stated analyst Ahmed Saeed Khan.
Overall, volumes increased by 113 percent to 506m shares, while value increased by 129 percent to Rs17.2 billion/$165 million.
Interest was seen in heavy weight stocks. HBL, LUCK and UBL contributed 256 points to the gain in index. In anticipation of relief package, NML, NCL and GATM closed at their upper limits of 5%, said dealers at major brokerage.
Stocks closed sharply higher after S&P raised Pakistan’s long-term credit ratings to "B" on improved economic performance and growth prospects, said analyst Ahsan Mehanti. Brokers said the market sentiments turned positive after yesterday’s political developments.
