Stocks rallied for a second day on Tuesday as latest numbers stirred up hopes economic recovery was on track despite headwinds, traders said.
Pakistan Stock Exchange's (PSX) benchmark KSE-100 Share Index secured 305.07 points or 0.64 percent to rise to 47,758.32 points against reaching a day high of 47,807.41 points and a low of 47,453.25 points.
Haris S Khan, an analyst at Topline Securities, said the momentum from Monday continued in the session with the index trading in green throughout the day.
“Investors cheered the improvement in July’s trade deficit by $590 million month-on-month,” he said.
Moreover, according to Khan, the approval by the IMF (International Monetary Fund) board of governors for the $650 billion SDR (special drawing rights) allocation after which Pakistan was expected to receive $2.8 billion by the end of August further buoyed the sentiment.
KSE-30 Shares Index, tracking the benchmark, gained 124.84 points or 0.66 percent to close at 19,110.07 points.
Traded volume increased 191 million shares to 443.21 million shares against 252.34 million shares, while trading value rose to Rs16.19 billion from Rs9.25 billion.
Market capital edged up to Rs8.356 trillion from Rs8.308 trillion. Out of 482 active scrips, 335 gained, 120 lost, while 27 closed as they had opened.
Ahsan Mehanti, analyst at Arif Habib Corp, said stocks closed higher led by scrips across the board as investors weighed auto sales that surged 12.5 percent and oil marketing companies sales that increased 16 percent in July 21.
Reports of record $2.35 billion exports in July 2021 surging 17.3 percent year-on-year, Prime Minister’s export target of up to $40 billion in FY22 and easing June inflation kept the stocks bullish, Mehanti added.
Unilever Foods emerged as the best gainer of the day by securing Rs500.50 to end at Rs16,900 per share, followed by Bata Pakistan, rising Rs75 to end at Rs1,625 per share.
Day’s worst loser was Nestle Pakistan, down Rs31.46 to finish at Rs5,878.54 per share, followed by Pakistan Tobacco, down Rs25.94 to close at Rs1,256.06 per share.
Brokerage Arif Habib Limited in a note said the market continued moving up albeit with an improvement in traded volumes.
“Oil and gas marketing companies, banks, refineries, technology, and textiles contributed positively to the index whereas exploration and production and steel stocks remained under pressure,” it said.
“Optimism brewed on the back of rupee depreciation will have a positive bearing on the earnings of textile, technology, and energy sectors -as well as upcoming financial results,” Arif Habib report said.
Significant turnover was recorded in stocks of WorldCall Telecom, Telecard Limited, Byco Petroleum, TPL Corp Ltd, Citi Pharma Ltd, Treet Corp, Ghani Global Glass, Unity Foods Ltd, Flying Cement and Pace (Pak) Ltd.
WorldCall Telecom remained the volume leader with 36.35 million shares. It gained 15 paisas to end at Rs3.64 per share. It was followed by Telecard Limited with 29.47 million shares, up Rs1.18 to end at Rs17.04 per share.
Share turnover in the future contracts increased to 109.59 million shares from 66.22 million on Monday.