Shares edged higher on Thursday, cheering lower government paper rates and gaining sentimental footing on the central bank governor’s hopes of winning the International Monetary Fund (IMF) green light for the lending program, traders said. .
The KSE-100 equity index, the country’s key capital market indicator, climbed 127.99 points or 0.28% to 45,083.04 points on the Pakistan Stock Exchange (PSX). The benchmark reached a daily high of 45,181.51 points and a low of 44,955.05 points during the trade.
“We are confident that it (the IMF program) will be revived as some of the key measures recently taken by the government have been in the direction of fulfilling previous IMF actions,” said Dr. Reza Baqir, Governor of the Bank. of State of Pakistan (SBP), in an interview with Bloomberg Television.
Zafar Moti, former head of PSX, said the market improved on Thursday.
Volumes remained low as usual, while trades were recorded in third-tier certificates, he said, adding that the best certificates were not traded, however.
“Pakistan should make a deal with the IMF and if that happens, other donor agencies will also look to Pakistan which will also benefit the capital market,” Moti said. He said, however, that rising coal and oil prices were cause for concern as they would increase inflation.
Ahsan Mehanti, an analyst at Arif Habib Corp, said stocks closed higher a day after government MTB (market treasury bill) cut-off yields fell 68 basis points on Wednesday.
The record high global crude oil prices and the hopes of the SBP (State Bank of Pakistan) for a positive IMF board review and release of the tranche under the EFF extended funding) contributed to a bullish close, Mehanti said.
However, he added that mid-session pressure remained due to political protests and the fall in global stocks.
The KSE-30 equity index also closed up 89.79 points or 0.51% at 17,828.10 points.
Shares traded increased by 36 million to 173.59 million from 137.30 million. The value traded increased from 5.36 billion rupees to 6.57 billion rupees. Market capital, however, declined to 7.704 trillion rupees from 7.711 trillion rupees. Of 333 assets in the session, 135 posted gains, 169 losses, while 29 remained unchanged.
Topline Securities, in a note, said the market opened on a positive note as investors cheered yesterday’s Treasury bill auction as cut-off yields fell 15 to 70 basis points. basis, the brokerage said.
According to the report, major support came from TRG, HUBC, MARI, ABL, LUCK and UNITY, while PAKT, FFBL, COLG and DAWH proved to be major laggards.
Sapphire Fiber ended up being the top earner rising from Rs 48.98 to Rs 860.98 per share, followed by Pak Services which jumped from Rs 41 to Rs 1,650 per share. Unilever Foods led the day’s losses with a drop from Rs134 to Rs22,275 per share, followed by Colgate Palm which fell from Rs66 to Rs2,400 per share.
JS Research in its market report said the index rallied mainly thanks to TRG, HUBC, PSEL, MARI and ABL.
“Going forward, we recommend investors book profits between 45,300 and 45,500 points and wait for the political dust to settle before entering new long positions,” the brokerage report suggests.
TRG Pakistan Ltd was the most traded stock of the day with 19.12 million shares. It was followed by Hum Network with 15.24 million shares.
Unity Foods Ltd, WorldCall Telecom, Cnergyico PK, Fauji Fert Bin, TPL Properties, K-Electric Ltd., Bank Al-Falah and Treet Corp were among the well-traded stocks.
Futures turnover jumped to 225.99 million shares from 180.26 million on Wednesday.