Stocks jump as investors cheer circular debt talks

Stocks increased on Monday, as there were talks on the constitution of the committee to resolve the issue of circular gas debt, traders said.

Pakistan Stock Exchange (PSX) benchmark KSE 100-share index jumped up 1.23 percent or by 485.96 points to close at 40,155.16 points against 39,669.20 points recorded in the last session. Intraday high was 40,366.58 points, while the lowest level of the day was recorded at 39,669.20 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks showed sharp recovery in the year-end rally at PSX on strong valuations and speculations over the positive outcome of MoF constitution of a committee to resolve Rs1.5 trillion circular gas debt crises.”

PTI chief hinted over Punjab chief minister to take a vote of confidence, easing political noise, whereas surging global equities and global crude oil prices played a catalytic role in the bullish activity, he added.

KSE-30 index also increased by 177.74 points or 1.22 percent to 14,778.32 points compared with 14,600.58 points recorded in the last session.

Traded shares increased by 14 million shares to 146.880 million shares from 132.633 million shares. Traded value rose to Rs5.134 billion from Rs4.590 billion. Market capital narrowed to Rs6.409 trillion from Rs6.325 trillion. Out of 329 companies active in the session, 207 closed in green, 108 in red and 14 remained unchanged.

Muhammad Arbash, an analyst at Topline Securities, said equities closed positively where the index settled at a 40,155 level (up 1.23 percent). Positive opening was witnessed at the bourse today as investors cheered the news flow that the Ministry of Energy has agreed to come up with a revised roadmap for the Circular Debt Management Plan for FY23 acceptable to both the government as well as the IMF. This led the stocks of Pakistan Petroleum, Oil and Gas Development Company, Pakistan State Oil, Pakistan Oilfields, Sui Northern Gas Pipeline, and Sui Southern Gas Company to close higher, Arbash added.

The highest increase was recorded in the shares of Nestle Pakistan, up Rs364.87 to close at Rs5,229.87/share, followed by Pak Services, up Rs99 to close at Rs1,599/share. A significant decline was noted in the shares of Bhanero Tex, down Rs72.93 to end at Rs1,051.01/share, followed by Pak Tobacco, down Rs57 to end at Rs915/share.

Brokerage Arif Habib Ltd said the week started with a positive session at the PSX. “The market opened in a positive zone and stayed green all day long,” it reported.

Investors’ participation remained healthy in the E&P sector on the expectation that the gas sector’s circular debt would be resolved. Robust volumes were observed in the mainboard although third-tier stocks remained in the spotlight.

Sectors contributing to the performance included E&Ps (+177.1 points), fertilisers (56.7 points), miscellaneous (+50.6 points), cements (+49.1 points), and oil marketing companies (+39.5 points).

PPL remained the volume leader with 11.055 million shares. Its scrip increased by Rs4.31 to close at Rs61.78/share. It was followed by OGDC with 7.699 million shares that closed higher by Rs3.89 to Rs76.87/share.

Other stocks that recorded significant turnover included WorldCall Telecom, Pak Refinery, K-Electric, Cnergyico PK, TPL Properties, Maple Leaf, TRG Pak Ltd and Dewan Motors.

Shares’ turnover in the future contracts increased to 111.441 million shares from 56.307 million shares.