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June 11, 2021

Stocks rebound on budget eve amid relief bets

 
June 11, 2021

Stocks hiked on Thursday tracking strong world crude oil and equities with the major lift coming from bets on an investor-friendly budget, scheduled today, dealers said.

Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Shares Index gained 0.99 percent or 473.87 points to close at 48,251.49 points. Traded volume eased to 1.03 billion shares from 1.35 billion on Wednesday.

Topline Securities in a note said bulls dominated the market, anticipating market friendly FY22 budget.

“On reports the government is likely to announce relief package for telecom sector in FY22 budget, TRG Pakistan closed 7.35 percent higher, contributing the most to the index.”

Further, the brokerage said interest was seen in fertilisers as Rs41.3 billion had been proposed for the development of agriculture sectors in the upcoming budget.

Out of 417 active scrips, 276 advanced, 117 retreated, and 24 ended neutral.

Ahsan Mehanti at Arif Habib Corp said stocks closed bullish on positive sentiments especially owing to a 34 percent surge in May 2021 remittance inflows.

The government’s growth target of 4.8 percent in FY22, PSDP proposal of Rs900 billion in the federal budget FY22 and surging global crude oil prices triggered the rally, Mehanti said.

KSE-30 Shares Index also rose 0.8 percent or by 155.79 points to close at 19,537.60 points.

Brokerage Arif Habib Limited said the market traded positively, adding a total of 510 points and closed the session at a bullish note.

Banks, fertilisers, cement, and technology stocks remained in the limelight, it added.

According to the Arif Habib report finance minister’s comments, while he was presenting the Economic Survey, also helped the market propel.

Brokerage JS Global Capital in its market review said breaking free from its recent trend of volatility, the index remained positive throughout the session and closed near its intraday high.

From the fertiliser sector, Arif Habib Corporation gained 0.4 percent, Engro Fertilizer 2.1 percent, Engro Corp 0.9 percent and Fauji Fertilizer Company (FFC) closed 1.0 percent higher, the brokerage said.

It said activity was witnessed in the banking space where National Bank gained 2.7 percent, Bank Al Falah up 2.1 percent, United Bank 1.7 percent, and Habib Bank (HBL) ended 1.4 percent stronger.

The government was all set to present the Federal Budget (2021-22) in the Parliament on Friday, the brokerage said.

“Going forward, we recommend investors to foray in construction-oriented sectors in case of any correction,” JS Global noted in its market report.

Rafhan Maize secured Rs298 to close at Rs9,898/share, whereas Island Textile rose by Rs125.88 to finish at Rs2,335/share being the best gainers of the session.

Wyeth Pakistan lost Rs65.19 to close at Rs2,167.4/share, while Mehmood Textile shed Rs35 to end at Rs470/share to become the worst loses of the day.

In terms of traded volume, WorldCall Telecom stayed in lead with a turnover of 329.07 million shares. The scrip gained 03 paisas to close at Rs4.25 share.

K-Electric was second with a trade of 49.07 million shares. It closed at Rs4.22/share without any change. Hum Network was third with 43.15 million shares. It gained 06 paisas to finish at Rs8.75.