KMI-30 Index Gains 1,168 Points Amid Shariah Buying

KARACHI – The Pakistan Stock Exchange (PSX) witnessed strong investor confidence on Tuesday, especially in Islamic investments and Sharia-compliant stocks. The benchmark KMI-30 Index (KMI-30 Index) erased the bearish effects of the previous sessions and gained a stunning lead of 1,168.71 points, indicating that there is sustainable and natural support in the market. Economists are linking the rally to long-term investment in the energy sector and strong manufacturing data from the corporate sector.

The KMI-30 Index opened at 234,232.75 points at the start of the trading day. The index started moving up sharply on the graph in the early hours due to buyer interest in the energy and fertilizer sectors. At one point during the trading(GLAXO), which fell session, the index touched an intraday high of 236,457.84 points. However, profit-taking by some local funds was seen in the second session of the day, which led to the index falling slightly below its high and testing the intraday low of 233,285.02 points. Ultimately, the market closed at 233,849.31 points with a positive change of 0.50 percent.

During this positive trend in the market, the trading volume of companies in the KMI 30 index was recorded at 94.62 million shares. Although this volume is average in terms of the overall capacity of the index, targeted buying in standard shares did not depress the index. If we look at the long-term performance indicators, since the beginning of the current financial year (FYTD), the index has given an impressive return of 26.48 percent, which is much more profitable than traditional fixed income tools. In contrast, the index is still in a deficit of 5.91 percent in the current calendar year (CYTD), which experts are calling a result of the tightening of monetary policy in the early months of the year.

Heavyweights of the oil and gas sector played a key role in driving up today’s trading session. Oil and Gas Development Company (OGDC) showed the most aggressive performance and contributed a large share of 407.32 points to the index alone. Pakistan Petroleum Limited (PPL) also took full advantage of this wave and contributed 291.06 points. Apart from them, Fauji Fertiliser Company (FFC) with 258.00 points, Hub Power Company (HUBC) with 211.02 points and Attock Refinery Limited (ATRL) with 76.99 points proved to be the major “pullers” of the market.

On the other hand, despite all the bullishness, a large group of the corporate sector saw intense selling pressure. Engro Holdings (ENGROH) proved to be the biggest dragger of the day, with its share price falling, causing the index to suffer a major setback of 299.80 points. Meezan Bank (MEBL) also lost 59.27 points, travelling into the negative zone. Mari Petroleum (MARI), which fell 50.54 points; GlaxoSmithKline (GLAXO) 28.21 points; and Maple Leaf Cement (MLCF), which fell 22.57 points, were the other prominent companies that dragged the index down. Analysts say that the position of the Shariah Index may further stabilise in the coming days, provided that the prices of petroleum products and the government’s fiscal policies remain consistent.