Stocks continued a positive momentum for a fourth straight session on Wednesday, helped by pre-budget expectations of incentives for telecom and technology companies in the upcoming budget, traders...
Stocks continued a positive momentum for a fourth straight session on Wednesday, helped by pre-budget expectations of incentives for telecom and technology companies in the upcoming budget, traders said.The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index closed higher by 219.25 points or 0.52 percent to 42,142.71 points against 41,923.46 points recorded in the last session.
“The market opened in the green, sustaining the previous session's strong momentum as rumours about the continuation of the IMF programme, which would be finalised in June made headlines,” a brokerage Arif Habib Limited reported. “Throughout the day, investors remained active, with the technology and telecom sectors remaining in the spotlight as the Prime Minister suggested incentives for the sectors in the upcoming budget.”
Across the board, healthy volumes were recorded, it added. The highest index of the day remained at 42,231.63 points while the lowest level of the day was recorded at 41,923.46 points. Likely announcements of major incentives for technology companies in the upcoming budget and news about potential deals between Pakistan government and global oil giants regarding establishing custom bonded storage facilities to maintain crude oil and petroleum products kept technology and OMC sector’s selective stocks onto investor radar, according to Ali Najib, an analyst at Topline Securities. He added that pre-budget rally was in full swing at the Exchange. KSE-30 index also increased by 70.55 points or 0.47 percent to 14,943.25 points compared with 14,872.70 points recorded in the last session.
Traded shares increased by 92 million shares to 332.534 million shares from 240.829 million shares. The trading value decreased to Rs7.148 billion from Rs7.152 billion. Market capital expanded to Rs6.406 trillion from Rs6.367 trillion. Out of 344 companies active in the session, 198 closed in green, 120 in red and 26 remained unchanged. Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks closed bullish led by selected scrips across the board as investors weigh easing political noise and govt growth projections at 3.5 percent for FY24.” He stated that speculations in the pre-budget rally and a surge in Pakistan dollar bonds over the expected renewal of the new IMF bailout programme had played a catalyst role in the bullish close.
SYS, COLG, TRG, UNITY & MARI added 158 points, cumulatively. However, ENGRO, DAWH and MEBL lost 43 points collectively. The highest increase was recorded in Colgate Palm shares, which rose by Rs116.92 to Rs1,675.86 per share, followed by Bhanero Tex., which increased by Rs84.99 to Rs1,289.99 per share. A significant decline was noted in Sapphire Fiber, which fell by Rs91.01 to Rs1,134 per share, followed by Philip Morris Pak., which decreased by Rs35.22 to Rs463.28 per share.
Sectors contributing to the performance included technology and communication (+100.1 points), chemical (+44.8 points), E&P’s (+36.5 points), OMCs (+21.3 points) and vanaspati and allied industries (+13.5pts).
WorldCall Telecom remained the volume leader with 79.599 million shares which closed higher by 7 paisas to Rs1.22 per share. It was followed by Telecard Limited with 16.584 million shares, which closed higher by 46 paisas to Rs7.41 per share.
Other significant turnover stocks included Pak Int. Bulk, TPL Properties, Unity Foods Ltd, Pak Refinery, Bankislami Pak., TRG Pak Ltd, Fauji Foods Ltd and Ghani Glo Hol. Shares’ turnover in the future contracts increased to 89.333 million shares from 59.889 million shares.