The Pakistan Stock Exchange’s Sharia-compliant KMI 30 Index witnessed positive trading activity on Tuesday, as expectations of better corporate results from domestic oil and gas companies supported the index. The KMI 30 Index closed at 233,849.31 points, up 1,168.71 points or 0.50 percent. According to market participants, institutional and individual investors seeking alternative sources of interest-free investment took advantage of the lower market levels to restructure their portfolios.
The day started on a stable note as the index opened at 234,232.75 points. During the initial session, the index started its upward flight and recorded an intraday high of 236,457.84 points. However, profit-booking in the cement and pharmaceutical sectors led to a partial decline in the market and the index fell to a low of 233,285.02 points. The index managed to close in the positive zone in the closing hours due to repurchases in gas and fertilizer companies. 94.62 million shares of KMI 30 companies were exchanged during the day, reflecting cautious but sustainable investment in the market.
According to economic indicators, the KMI 30 index has provided a total profit of 26.48 percent so far during the current financial year (FYTD), which confirms the rapid growth of Islamic banking and Sharia finance in the country. However, if compared to the current calendar year (CYTD), the market is still facing a loss of 5.91 percent. According to experts, this decline is due to fluctuations in commodity prices globally and the implementation of new taxation laws at the domestic level.
Among the companies that moved the market forward in today’s trading, Oil and Gas Development Company (OGDC) was the top performer, adding a big and decisive 407.32 points to the index. Pakistan Petroleum Limited (PPL) also performed strongly, gaining a lead of 291.06 points. Moreover, Fauji Fertilizer Company (FFC) gained 258.00 points, Hub Power Company (HUBC) gained 211.02 points and Attock Refinery Limited (ATRL) gained 76.99 points, playing a key role in improving the index’s position.
On the contrary, the sharp decline in some major stocks in the market also had a negative impact on the index. Shares of Engro Holdings (ENGROH) witnessed exceptional selling pressure, which led to a loss of 299.80 points from the index. The country’s largest Sharia bank, Meezan Bank (MEBL), lost 59.27 points, while Mari Petroleum (MARI) fell 50.54 points, GlaxoSmithKline (GLAXO) 28.21 points and Maple Leaf Cement (MLCF) 22.57 points, were among the companies that pushed the index down. Brokerage houses believe that the index could improve further in the coming days as demand in the cement sector increases.
