Stocks edged higher on Wednesday on gains in blue-chip shares as investors held onto hope that the government would make progress on IMF bailout deals
Exchange's (PSX) benchmark KSE 100-share Index closed higher by 91.76 points or 0.22 percent to close at 41,099.58 points. The highest index of the day remained at 41,364.60 points while the lowest level of the day was recorded at 41,007.82 points.
KSE-30 index fell 12.39 points or 0.08 percent to close at 15,294.33 points. Traded shares rose by 13 million shares to 186.900 million shares from 173.790 million shares. The trading value increased to Rs5.781 billion from Rs5.724 billion. Market capital expanded to Rs6.213 trillion from Rs6.201 trillion. Out of 331 companies active in the session, 174 closed in green, 131 in red and 26 remained unchanged.
Analyst Ahsan Mehanti at Arif Habib Ltd said bullish activity witnessed at the PSX in the quarterly earnings season while rupee recovery amid hopes for a revival of IMF loan program after the finance minister’s affirmation on fulfilling all IMF conditions also helped buying activities.
“Strong financial results and expectations of a positive economic outcome form the COAS's visit to China played a catalytic role in the bullish activity.” Muhammad Arbash, an analyst at Topline Securities, said the market opened on a positive note over the revival of the IMF loan agreement as the government had met all conditions of the IMF as per finance minister Ishaq Dar.
“That led the market to make an intraday high of 356 points.” UBL, DAWH, BAHL, FFC and HUBC were the major gainers in the trading session that cumulatively added 153 points to the benchmark index.
The highest increase was recorded in Khyber Textile shares, which rose by Rs52.45 to Rs774.90 per share, followed by Sanofi-Aventis, which increased by Rs40 to Rs700 per share. A significant decline was noted in Sapphire Fiber, which fell by Rs74.02 to Rs970.51 per share, followed by JS Global Cap., which decreased by Rs24.33 to Rs300.21 per share.
Brokerage Arif Habib Ltd said the PSX resumed trading with a bullish session following the long Eid holidays. “The benchmark index opened in the green as bulls took control, reaching an intraday high of 356.07 points as investors remained hopeful for the release of the IMF's Extended Fund Facility, with media reports indicating funding from friendly countries,” the brokerage said.
“Investor activity increased substantially as stronger volumes were observed across the board, with 3rd tier equities leading the volume board.” Sectors contributing to the performance included commercial banks (+56.0 points), investment companies (+42.4 points), technology & communication (+13.1 points), food & personal care products (+12.0 points), and refinery (+9.2 points).
Pak Refinery remained the volume leader with 16.012 million shares which closed higher by 70 paisas to Rs14.22 per share. It was followed by Fauji Foods Ltd with 13.692 million shares, which closed higher by 2 paisas to Rs6.35 per share.
Other significant turnover stocks included WorldCall Telecom, Cnergyico PK, Maple Leaf, Aisha Steel Mill, Bankislami Pak., Telecard Limited, Dewan Motors and TRG Pak Ltd. Shares’ turnover in the future contracts surged to 271.856 million shares from 35.111 million shares.