Stocks on Wednesday gained for the third session with some jacked financial results setting the stage for an enduring rally, amid somewhat easing political uncertainties and strong economic numbers, dealers said.
Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index strengthened by 1.41 percent or 579.34 points to close at 41,535.92 points, while volumes swelled to 661.276 million shares, compared to 492.674 million on Tuesday. KSE-30 shares index gained 1.37 percent or 236.54 points, to close at 17,518.32 points.
A A Soomro, managing director KASB Securities, said, “The bears are being bid farewell as the bulls are being welcomed back in the market”.
“In a nut-shell, this is a fundamentals-based rally and has many legs.”
Soomoro added that the result season was being supported by army chief’s softer tone towards Pakistan People’s Party amid Police-Rangers tiff in Sindh, where more greenery was likely to ensue.
Of 424 active scrips, 286 gained, 122 lost, and 16 closed as they were at the opening of the session.
Faisal Shaji, strategist at Standard Capital, said, “The index closed above the critical level of 41,200 points and entered into bullish territory, which is a positive sign”.
He said some banking and fertiliser sector earnings rejuvenated the mood of general investors, while some good dividend announcements also augured well for the realignment of investment options.
“The emergence of cracks in the opposition alliance also gave investors hopes this political showdown is unlikely to endure,” Faisal said.
Muhammad Saeed Khalid, head of research at Shajar Capital, said, “The capital market remained robust during the day, marking an intra-day high of 1.60 percent to close above 41,500 points’ levels.
Despite prevailing political turmoil, investors remained bullish on the scrips, mainly due to the positive sentiments on the FATF decision, he said.
“Investors bought heavily into shares of UNITY, GHNL, GHNI, EFERT, and oils, on better economic and oil price sentiments.”
Khalid said balance of payment numbers also improved the KSE-100 index return as current account showed surplus of $792 million in the Q1FY21.
Analyst Ahsan Mehanti from Arif Habib Corporation, said, “Stocks gained in the earnings season rally led by scrips across the board on strong current account, exports, and remittances numbers, amid upbeat corporate results in oil and banking sectors”.
Renewed hopes for Pakistan’s exit from FATF’s grey list this week, strong rupee amid surging interest in Roshan Pakistan FC deposit accounts and higher global crude oil prices supported the rally, Mehanti added.
Phillip Morris Pakistan, up Rs84.90 to close at Rs1,684.90/share, and Bata Pakistan, up Rs61.13 to finish at Rs1,661.13/share, gained the most, while Sanofi-Aventis, down Rs40.90 to close at Rs779/share, and Gatron Industries, losing Rs39 to close at Rs660.00/share, suffered the most losses in the day.
Unity Foods Limited, up Rs1.46 to end at Rs21.00/share, posted the highest turnover with 64.481 million shares, whereas BankIslami Pakistan, down Rs0.09 to end at Rs10.32/share, recorded the lowest with 17.698 million.