Stocks began the week higher in a pre-budget rally on Monday as investors weighed talks of some significant allocations in Public Sector Development Programme (PSDP) and other budgetary reforms, traders said. A buying momentum was observed across the board, with investors opting to make some trading positions in exploration and production (E&P), oil marketing companies (OMCs), technology, and fertiliser.
The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index closed higher by 314.95 points or 0.76 percent to 41,667.94 points against 41,352.99 points recorded in the last session. The highest index of the day remained at 41,681.68 points while the lowest level of the day was recorded at 41375.58 points.
Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks closed bullish in the pre-budget rally at PSX as investors weigh proposed Rs950 billion PSDP allocations and surge in global crude oil prices.” He added that a bull run in global equities and a strengthening rupee had played a catalyst role in the bullish close.
KSE-30 index also increased by 134.31 points or 0.92 percent to 14,798.45 points compared with 14,664.14 points recorded in the last session. Traded shares increased by 46 million shares to 145.177 million shares from 99.545 million shares. The trading value increased to Rs4.682 billion from Rs3.336 billion. Market capital expanded to Rs6.330 trillion from Rs6.276 trillion. Out of 321 companies active in the session, 183 closed in green, 107 in red and 31 remained unchanged.
Analyst Naveed Nadeem at Topline Securities said equities had a bullish day in anticipation of further increases in international oil prices and an increase in gas tariff by the Oil and Gas Regulatory Authority. “The aforesaid expectation assisted the market to stay in the green zone through the day,” he said.
During the trading hours, SNGP, PPL, OGDC, PRL and PSO contributed positively to the index while some profit-taking was observed in LUCK, UBL and ENGRO. The highest increase was recorded in Mari Petroleum shares, which rose by Rs31.25 to Rs1,554.17 per share, followed by Colgate Palm, which increased by Rs28.87 to Rs1,528.87 per share. A significant decline was noted in Bata (Pak), which fell by Rs63.50 to Rs1,630.50 per share, followed by Nestle Pakistan, which decreased by Rs50.02 to Rs6,489.98 per share.Brokerage Arif Habib Ltd said a positive session was recorded at the PSX to mark the start of the week. “The benchmark KSE-100 index opened with optimistic sentiments after whispers about the positive advancements on the budgetary reforms for the financial year,” it reported. “Investors participation remained active across the board while the OMCs and E&Ps sectors remained in the limelight.”
Sectors contributing to the performance included E&P’s (+175.0 points), OMCs (+77.5 points), power generation and distribution (+30.2 points), technology and communication (+19.0 points) and chemical (+17.4 points). WorldCall Telecom remained the volume leader with 16.777 million shares which closed lower by one paisa to Rs1.16 per share. It was followed by Sui North Gas with 9.750 million shares, which closed higher by Rs2.69 to Rs43.38 per share.
Other significant turnover stocks included Pak Petroleum, Oil & Gas Dev., Pak Refinery, Pak Int. Bulk, Hascol Petrol, Sui South Gas, Pak Elektron and Cnergyico PK. Shares’ turnover in the future contracts increased to 39.864 million shares from 21.323 million shares.