On Tuesday, analysts observed a happy upward curve in terms of optimism at the stock market. This is one of the news that spreads unexpected happiness and same happened at the stock market. However, all in a day’s work. The upward curve was due to an addition of 239 points at the KSE-100 index which was in turn due to an expected low inflation for the month of April. A possibility of a deeper rate cut in May by the state bank’s monetary policy also played a great role. Stocks trading and markets are affected by general confidence and trust. An air of disbelief can be extremely detrimental for a market that is already going in a nose dive. Well it’s the same case around the world, isn’t it?

It doesn’t matter whichever index is eyed; only melancholy is evident. Due to the halt in international trade that came as an after-shock of the pandemic, people do not trust the numbers. For those analysts who are crunching numbers and making predictions, this pandemic has not been exactly kind. However, when it comes to PSX this upheaval can be rather regarded as a positive one. Observation also revealed a different trend for late Monday as Brent crude traded below $20 per barrel and West Texas Intermediate (WTI) saw a fall of 25%. All of this fiasco impacts the oil stocks at PSX and so it happened.

  

The remaining part of the day was governed by a directionless session. Early hours of trading were not so devastating and showed a surge and rise in fact. Once again the happiness was not that long lived as countable advances were taken off the table at noon. Then again, optimism set the tone and helped to make up for losses. At end, KSE-100 index recorded an increment of 238.82 points for a total score of 32.553.39. As long due concerns over cement prices faded, prices in the sector saw a revival. PSO also reported gains. However, banking sector didn’t have anything to report other than raw selling pressure due to rate cut possibilities.

As the market trend depicted, top position was maintained by the cement sector with vanaspati firms and banks in following. The trading volumes were 59.6, 20.5, and 16.8 million shares respectively. According to experts the investment funnel remained dry and thin due to shrunken participation by investors due to Ramadan. Overall, the trend was a positive one with many big names retaining position. The total numbers for trading volumes reached to 159.4 million shares which is good when compared to Monday’s nosedive that yielded 122.3 million shares. 325 companies traded shares. Out of these 325 only 174 closed in a better place. The undisputed volume leader was maple leaves followed by unity foods and Bank of Punjab. 

With this being said, there are still many Tuesdays to come. We all hope that we can see good days at the stock market without having to worry about plummeting figures.

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