ISLAMABAD: After observing a dismal last week, the Pakistan Stock Exchange (PSX) KSE-100 Index witnessed a major bullish trend on the second consecutive day, as the index jumped nearly 2% and gained 1188 points on Thursday to settle at 6252 against 60,863 last day. During two days, the index gained over 2500 points to recover from last week’s major bearish sentiments.
Like the last day, buying was witnessed across the board on Thursday as heavy sectors, including automobile assemblers, commercial banks, fertilizer, chemical, oil and gas marketing and exploration companies, power generation, and event property-related companies traded in the green and opted for buying.
Experts believe the continued bullish trend was due to the fresh liquidity being injected into the market ahead of the beginning of a new month. In addition, the Pakistani currency has also been floating upward for the last 12 consecutive sessions, bringing some relief to investors.
Meanwhile, on Thursday, the total volume of the shares increased to 676.2 million from the last day’s stand of 669.3 million. The value of shares went up to Rs20.2 billion against Rs16.1 billion on Wednesday.
K-Electric Ltd remained the volume leader with 62.8 million shares, followed by WorldCall Telecom with 46.1 million shares, whereas Fauji Foods Ltd settled as number three from the top at 43 million shares.
In total, 382 companies traded their shares on Thursday, 283 witnessed a gain, 83 recorded a loss, and 16 remained unchanged.
From Bearish to Bullish Trend at PSX
The last two and a half months witnessed a massive Bullish trend, while during the last several months, the KSE-100 Index has recorded a historic bullish spree after gaining about 60%.
However, the last two weeks have observed a massive bearish trend due to the profit-taking and correction processes. Only in the last two months has the market gained over 14000 points. In November, the 100-index got over 8000 points, while during the last five months, the 100-index achieved historical 24000 plus points.
Meanwhile, in the last couple of weeks, we enjoyed several consecutive all-time highs at PSX. After breaking a few records in the middle of November, the index surpassed a new historical high and surpassed the 58000 mark. At the end of November, the index crossed the 60000 benchmark. Meanwhile, the market continued the same bullish trend in the first quarter of December, and till December 15, it gained over 5000 points to reach above 66000 points.
However, from the last several days (since December 13), the market switched over to the massive bearish trend with a major decline on December 20 (over 2300 points), followed by another bearish trend of over 1100 points last Friday and the bloodbath last Tuesday by over 2500 points. But during the last 2 days, the market turned bullish to gain over 2500 points.
