Stock gained on Wednesday as markets took heart from economic data after official figures showed the country's trade deficit narrowed by more than expected, dealers said.
The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index gained 160.29 points or 0.38 percent to close at 42,087.93 points. The highest index of the day remained at 42,171.48 points while the lowest level of the day was recorded at 41,914.46 points.
Brokerage Arif Habib Ltd said another positive session was taped at the market. “The benchmark index opened with the same optimistic feelings as the previous close, as the trade deficit shrank by 39.62 percent year on year to $23.71 billion in 10MFY23, providing investors a sense of optimism,” it reported. “Investor engagement surged considerably as mainboard volumes increased, although the banking and cement sectors remained market trendsetters.”
KSE-30 index also increased gained 37.28 points or 0.24 percent to close at 15,368.55 points. Traded shares rose by 69 million shares to 289.835 million shares from 220.030 million shares. The trading value increased to Rs10.178 billion from Rs6.494 billion. Market capital expanded to Rs6.342 trillion from Rs6.314 trillion. Out of 365 companies active in the session, 160 closed in green, 180 in red and 25 remained unchanged.
Analyst Ali Najib at Topline Securities said it was another positive day for Pakistan equities and the index mostly remained in the green zone. “The aforesaid buying momentum can be attributed to fresh buying in cement sector on the back of yesterday’s buyback announcement of over Rs10 billion by the largest cement player of the country,” Najib said.
During the trading hours, LUCK, PKGS, CHCC, OGDC & PIOC added 161 points, cumulatively. On the flip side, SYS, EFUG and TRG witnessed some profit-taking as they lost 69 points collectively.
The highest increase was recorded in Unilever Foods shares, which rose by Rs1,537.50 to Rs22,137.50 per share, followed by Bhanero Tex., which increased by Rs69.04 to Rs989.55 per share. A significant decline was noted in Sapphire Tex., which fell by Rs74.06 to Rs1,100.94 per share, followed by Sapphire Fiber, which decreased by Rs50 to Rs1,000 per share.
Analyst Ahsan Mehanti at Arif Habib Corp said stocks closed higher on better economic data. He said speculations over corporate share buybacks, CPEC initiatives and pre-budget announcements played a catalytic role in the bullish activity.
Sectors contributing to the performance included cement (+139.5 points), paper & board (+21.8 points), E&P’s (+17.5 points), food & personal care products (+11.9 points), and OMC’s (+9.7 points).
WorldCall Telecom remained the volume leader with 55.300 million shares which closed higher by 8 paisas to Rs1.24 per share. It was followed by Habib Bank with 23.530 million shares, which closed higher by 30 paisas to Rs78.24 per share.
Other significant turnover stocks included Maple Leaf, TPL Properties, Fauji Foods Ltd, Sui North Gas, D.G.K. Cement, Pak Refinery, Pioneer Cement and Fauji Cement. Shares’ turnover in the future contracts dropped to 60.544 million shares from 63.277 million shares.