PSX Today
A strong recovery at PSX today. KSE100 Index rose 382 pints to close at 43,934 up 0.88%. Although the market was weak in initial two hours and had lost over 250 points, but made consistent broad-based recovery afterwards. traded volume was lower than Friday. Total share traded remained 131mn shares compared to 161 mn shares on Friday last. Cement sector today was the star contributing 113 points to the index. In this the biggest chunk of 61 points was contributed by Lucky Cement. Cements stocks are at historic lows on declining margins as energy prices soar. Valuations are attractive though and the industry has shown that it can pass on the higher cost.
Today was first day after roll over week. Settlement issues normally linger on. But todays sharp recovery reflects successful roll over. Market is not highly leveraged at this stage. Future counters have mostly dried up. For several weeks the market was giving clear signals of facing no selling pressure.
Day end trading figures show over $2mn net-selling by the 'foreigners' in banking sector. This has been consistent pattern of 'foreigners' selling in the banking sector since FATF ruling. In local buyers, Banks were active and were net-buyers of over $3mn. All others participants did not show much activity.
Overseas Pakistanis have not shown much interest in PSX for quite some time. Today 'Brokers' were active on the 'Cement' counter' All other were net sellers. DG Khan cement had closed up +6.3%.
Today's closing and market performance has positive bullish signs for 'technical' people. See this tweet.
Rupee consistently weak against the US dollar. Closing on 183.
Brent down 7.15% . Trading at $112. "China said they would shut the country’s financial hub to carry out Covid-19 testing over a nine-day period".
