Stocks on Friday extended the joyride that kicked off a day earlier on outlook that friendly countries would soon open the spigots of their promised funding to Pakistan and International Monetary Fund’s bailout package would convert into dollars that are critical for the country to ward off a balance of payment crisis, dealers said.
Analyst Ahsan Mehanti from Arif Habib Corporations said stocks closed bullish amid thin trade on investor speculations ahead of Prime Minister’s visit to UAE regarding likely financial assistance to ease external account crises.
“Recovery in global crude prices, government actions on reforms in the power sector, privatisation to seek IMF bailout package, a surge in exports, and upbeat remittances data led the bullish close at the apex bourse,” Mehanti added.
Pakistan Stock Exchange’s (PSX) benchmark KSE-100 shares index gained 0.56 percent or 232.12 points to close at 41,660.75 points level, while KSE-30 grew 0.77 percent or 151.99 points to end at 19,959.38 points level.
Of 371 active scrips, 173 moved up, 177 retreated, and 21 remained unchanged. The ready market volumes stood at 201.540 billion shares, as compared to the turnover of 254.905 billion shares in the previous session.
Salman Ahmad, head of equity sales at Aba Ali Habib, said Prime Minister Imran Khan’s recent statement that bailout packages from the brotherly countries would help resolve the issue of external payments weighed heavily in a positive way. “Another sentimental boost came from the shrinking current account deficit and improving exports, while crude oil price under $70/barrel hints at an ease in the pressure on the rupee as well as economy,” Ahmad said.
Gandhara Nissan for the second consecutive session recorded appreciation following the announcement of its entering into a truck-manufacturing venture with Renault, the French multinational automobile maker.
Textile companies weaved up and down in a narrow strip with limited gains as the exporters are anxiously waiting for the government’s announcement. Following the announcement of gas price increase it was told that export-related industries would get gas at reduced rates, but the bills received showed higher tariff structure.
All the trade related bodies associated with exports have urged the government to take immediate review, though assurance has been given but the notification has not been out yet which kept the textile shares on a tight leash.
Analysts expect the market to see some selling pressure after IMF terms and conditions, which are likely to be tough, are made public, next week.
“To procure loan one has to accept harsher conditions, which would help put on track the key indicators like fiscal deficit and current account deficit,” an analyst said.
The highest gainers were Colgate Palmolive, up Rs114.98 to close at Rs2524.99/share, and Nestle Pakistan, up Rs49.75 to finish at Rs8999.75/share.
Companies that booked highest losses were Shifa International Hospital, down Rs11.90 to close at Rs226.12/share, and Attock Refinery, down Rs11.14 to close at Rs211.75/share.
Lotte Chemical recorded the highest volumes with a turnover of 19.307 million shares.
The scrip gained Rs0.14 to close at Rs19.95/share.
The lowest volumes were witnessed in Engro Polymer, recording a turnover of 8.366 million shares, and losing Rs0.31 to end at Rs39.05/share.