Stocks barreled ahead on Thursday pushed by banks that grabbed limelight after strong earnings amid cheers over successful staff level talks with the IMF, traders said.
After gaining 321.94 points or 0.71 percent, KSE-100 Shares Index, the benchmark of Pakistan Stock Exchange (PSX), closed at 45,821.40 points. The index, however, explored a day high of 46,162.78 points and a low of 45,462.63 points.
Brokerage Topline Securities in a post-market note said equities rallied today led by banking and oil and gas exploration and production (E&P) stocks in anticipation of aggressive monetary tightening and higher international oil prices.
A 40 basis points increase in cut-off yields in Wednesday’s Pakistan Treasury Bills’ auction lured investors into banking sector, lifting UBL, HBL, and BAHL by 5.06 percent, 2.76 percent, and 2.77 percent, respectively, adding 173 points, the brokerage said.
It added tracking the rising international oil prices MARI, OGDC, and PPL also contributed 80 points to the index.
Following the benchmark’s suit, KSE-30 Shares Index gained 181.61 points or 1.02 percent to close at 18,006.14 points.
Darson Securities in its market wrap said stocks extended previous session's gains paced by a rally in banking and fertiliser shares.
The equity bazaar started with a spike and the index hit an intra-day high of 46,164.48 levels, the brokerage said.
Unfortunately, it added that the momentum could not be sustained as profit-taking trimmed some early gains after police in Lahore police were put on high alert as banned Tehreek-i-Labbaik Pakistan (TLP) resumed protest activities by staging a massive sit-in on Multan Road.
Volumes increased by 30 million shares to 338.31 million from 308.18 million shares, while trading value increased to Rs13.36 billion from Rs10.38 billion.
JS Research said benchmark index was so far on a winning streak this week, where it managed to cross 46,000 level in intraday today; however late profit-taking weighed.
Market capital rose to Rs7.897 trillion from Rs7.858 trillion. Out of 359 companies active in the session, 158 posted gains, 185 losses while 16 remained unchanged.
Arif Habib Corp’s Ahsan Mehanti said stocks closed higher on reports of Pakistan-IMF staff level agreement over resumption of EFF (extended funding facility).
Central bank governor’s hinting at possible good news for the nation upon reaching IMF agreement, strong financial results, in the banking sector, and higher global crude oil prices kept the rally going at the PSX, Mehanti said.
Philip Morris Pakistan made headlines after nailing the best gains of the day, up Rs58 to close at Rs833/share, followed by Mari Petroleum that grabbed Rs47.54 to finish at Rs1,773.93 per share.
Wyeth Pakistan Ltd was the worst hit stock of the day, down Rs126.35 to Rs1,558.65/share, followed by Rafhan Maize that fell by Rs100 to Rs10,289.99/share.
Kohat Cement in its 1QFY22 result posted an EPS of Rs6.96, up 176 percent year-on-year and 45 percent QoQ. The cementmaker’s earnings were higher than industry expectations.
Brokerage house Arif Habib Limited said a clear signal of resumption of IMF loan package by Finance Minister Shaukat Tarin swayed the index upwards to gain a total of 665 points during the session, which has cumulatively added ~3,000 points since the near term bottom of 43,200.
It said banks and E&P stocks contributed the most, while technology and cyclical sectors came under selling pressure.
Bank of Punjab led volumes chart with 25.56 million shares, followed by Telecard Limited with 24.33 million shares. Shares’ turnover in the future contracts decreased to 72.73 million shares from 80.23 million shares.