The Pakistan Stock Exchange (PSX) has witnessed a trading volume of one billion shares in a single day for the first time in 16 years.
On Wednesday, PSX recorded a volume of one billion shares being traded for the first time in 16 years, the volume of shares increased mainly due to contributions by a handful of ‘penny stocks’.
According to stock strategist Khurram Schehzad, the session was highly concentrated in terms of the number of stocks that boosted the huge volume, with WorldCall Telecom Ltd (WTL) alone contributing 37 percent. Another 51 percent of the historic volume was driven by only three, and mostly penny stocks.
WorldCall Telecom Ltd remained at the top contributing 370 million shares among the 10 volume leaders, the price of stock closing at only Rs 1.68. Whereas, the second-highest traded stock with a volume of 107 million shares was K-Electric Ltd (KEL), another low priced scrip at Rs 4.54.
Moreover, Telecard rounded off the top three contributors. Other volume leaders were also low priced.
On Wednesday, the stock market fell for the fourth consecutive day with the KSE-100 index down 3.48 points to 46,644 points as the 47,000 level is showing strong resistance. Meanwhile, the cement sector performed against the trend where 17 gained in the range of 2.5 percent to 7.5 percent out of 19 stocks.
In the refinery sector, National Refinery Limited (NRL) staged a rally in the last hour of trading. Most other sectors saw heavy profit-taking like, banking, autos, steel, technology and pharma. In addition, exploration and production (E&P) stocks had been showing signs of recovery after they suffered heavy battering due to the recent record increase in international oil prices.
Moreover, Shahid Ali Habib, CEO Arif Habib Limited said, “Pakistan capital market is offering excellent investment opportunities both for the investors, whether it is Non-Resident Pakistani or resident Pakistani and also foreign investors.”
“It is also providing very good opportunities for the issuance of the companies to raise capital from the capital markets,” added Habib.
He further said, “The earnings growth in the first quarter of FY21 was 47 percent, for the second quarter we are expecting around 30 to 35 percent earnings growth. So overall for this financial year FY21, we are expecting a growth of around, which is very attractive and exceptional earnings growth compared to last 10 years of 10 to 12 percent.”