Stocks move up on Pakistan’s improved ranking in WB report

The capital market on Thursday closed in green for the third consecutive session as investor sentiments were boosted following the World Bank Doing Business 2020 report, showing Pakistan’s ranking improved by 28 notches to 108 in ease of doing business, dealers said.

Analyst Ahsan Mehanti from Arif Habib Corporations said, “Stock closed bullish led by oil and banking scrips on stronger valuations and speculations on government resolve for ease in circular debt crises amid approval of issue to Rs200 billion Pakistan Energy Sukuk.”

Stronger rupee parity, surging global crude oil prices, easing political noise and government’s renewed commitments on Financial Action Task Force ICRG (International Co-operation Review Group) action plan implementation played a catalytic role in the bullish close, Mehanti added.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index gained 0.97 percent or 322.79 points to close at 33,762.48 points level. KSE-30 shares index followed suit with a high of 1.07 percent or 167.80 points to end at 15,783.91 points level.

Of 353 active scrips, 214 moved up, 115 retreated, and 24 remained unchanged. The ready market volumes stood at 121.325 million shares, as compared with the turnover of 116.944 million shares in the previous session.

Salman Ahmad, head of institutional sales at Aba Ali Habib, said, “Since the opening of the market, reports were circulating that the World Bank has improved the country’s rating (on its Doing Business report), once materialised it helped boost the sentiment and the index.”

The permission by the government, allowing Maulana Fazlaur Rehman to hold public meeting, reduced the temperature, and diffused the chances of any clash between the protestors and the government officials, which sent positive waves to the market movers.

A leading trader said the bourse needed some positive trigger on the economic front, which arrived through the World Bank’s announcement where Pakistan has jumped up 28 places on the Doing Business Index, and secured a place among the top 10 countries with the most improved business climate.

Pakistan carried out six reforms in the last one year that helped improve its ranking from 136 to 108, according to the World Bank’s annual flagship report, ‘Doing Business 2020’, released on Thursday.

Faisal Shaji, Strategist at Standard Capital, said, “KSE-100 index initially started on a bullish note on (media reports) that former PM might be allowed to travel abroad on health reason which could give easy way to incumbent PM to continue his tenure and economic agenda.”

Another factor which supported the market has been continuous inflows from the foreign fund houses in the equities market. Since last three sessions, foreign investors have been net buyers of shares with active support arriving from local financial institutions. The highest gainers were Nestle Pakistan, up Rs320.00 close at Rs6,930.00/share, and Service Industries Limited, up Rs31.00 to finish at Rs651.00/share.

Companies that booked highest losses were Unilever Foods, down Rs299.50 to close at Rs6,700.00/share, and Bhanero Textile, own Rs14.25 to close at Rs855.00/share.

WorldCall Telecom recorded the highest volumes with a turnover of 17.230 billion shares. The scrip gained Rs0.01 end at Rs1.02/share.

The lowest volumes were witnessed in Pakistan International Bulk, recording a turnover of 3.418 million shares, whereas the scrip lost Rs0.07 to end at Rs9.10/share.