Stocks on Wednesday stayed the stellar course as institutional as well some select high-net-worth investors remained busy foraying into a market that is rife with irresistible deals, while latest economic numbers also came in handy in terms of bolstering sentiments, dealers said.
Madiha Javed, head of research at Ismail Iqbal Securities, said the market continued its positive momentum for the third straight session on multiple factors.
“Current account deficit for July came in at $579 million, down 73 percent year-on-year and 37 percent month-on-month, with exports increasing 24 percent month-on-month,” Javed said.
She said US statement for a peaceful resolution of Kashmir state status was also taken positively by the market. “Governor State Bank of Pakistan Reza Baqir is slated to lead a delegation for assessment of Pakistan’s compliance with FATF’s (Financial Action Task Force) action plan. The current meeting, combined with the Sept 5 meeting will form the basis of the FATF review meeting in October,” she said.
Pakistan Stock Exchange’s (PSX) benchmark KSE-100 shares index gained 1.82 percent or 553.53 points to close at 30,972.75 points level, while KSE-30 hit a high of 2.24 percent, amassing 320.85 points, to end at 14,668.48 points level.
Of 347 active scrips, 248 up, 76 retreated, and 23 remained unchanged. The ready market volumes stood at 134.564 million shares against a turnover of 142.578 million in the previous session.
Analyst Ahsan Mehanti from Arif Habib Corporations said stocks closed bullish led by scrips across the board as investors weighed upbeat data on current account deficit. “Investor hopes after US resolve to the end Pakistan-India conflict on Kashmir, new appointments at the SECP (Securities and Exchange Commission of Pakistan), rupee stability and surging global crude prices catalysed a bullish close,” Mehanti added.
Salman Ahmad, head of institutional sales at Aba Ali Habib Securities, said the market again recorded appreciable gains mainly because of bargain hunting as shares values had dipped to four-year lows, while some of the companies lost share values in the range of 10 to 70 percent during the recent bearish spell.
Another factor which bolstered the stock market was the recovery in the cement stocks on speculations the disbanded cartel of manufacturers was trying to regroup, Ahmad said.
Since the opening of the week the market has been in the green zone and in the last three sessions has registered an increase of around 2208 points. The market capitalisation has improved by almost Rs325 billion mainly owing to a technical rebound. In the first year of this government the benchmark index has lost 32 percent, while choice scrips, trading stocks, and blue chips have suffered a decline of 8 percent to 72 percent, which is enticing for investors to book sizeable deals. The highest gainers were Bata Pakistan, up Rs56.55 to close at Rs1189.30/share, and Siemens Pakistan, up Rs29.21 to finish at Rs613.53/share.
Companies that booked highest losses were J.D.W Sugar, down Rs13.77 to close at Rs262.04/share, and Blessed Textile, down Rs11.38 to close at Rs216.54/share.
TRG Pakistan Limited recorded the highest volumes with a turnover of 11.970 billion shares, whereas its scrip gained Rs0.26 to end at Rs13.46/share.
The lowest volumes were witnessed in Oil & Gas Development Company, posting a turnover of 3.286 million shares; however, it gained Rs2.39 to end at Rs118.33/share.