KARACHI: An exceptionally remarkable session ended on a dull note on Friday as the KSE-100 Index settled just 76.80 points higher on last trading day of the week, which was its eighth successive session in the black.
Following announcement of an amnesty scheme by the prime minister on Thursday, investors were ecstatic and resorted to heavy buying, which propelled the index to a gain of over 580 points in intra-day trading.
Although the rally lasted only for the first hour, the index managed to power past 47,100 points. Later, profit-taking set in that dragged the index down.
At close, the benchmark KSE 100-share Index recorded an increase of 76.80 points or 0.16% to settle at 46,637.62.
JS Global analyst Maaz Mulla said Pakistan equities continued to maintain their positive thrust with the benchmark KSE-100 Index advancing to close at 46,638 points.
“The market started off on a positive note, hitting an intra-day high of 583 points, where the market strengthened as the PM declared the tax amnesty scheme on the eve of elections. However, profit-taking was witnessed during second half of the trading session,” Mulla said.
The government anticipated an inflow of $3-4 billion from the scheme. The potential dollar inflows were expected to ease pressure on Pakistan’s foreign currency reserves.
Also, news of International Islamic Trade Finance Corp (ITFC) agreeing to lend $3.285 billion to Pakistan in order to finance trade activities for three years was also expected to support the country’s foreign exchange reserves.
Moreover, profit-taking was witnessed in the cement sector where Lucky Cement (-0.18%), DG Khan Cement (-0.23%) and Pioneer Cement (-0.41%) closed in the red.
“Moving forward, we expect overall activity to remain buoyant in coming sessions with flows from foreigners and local institutions guiding market direction. However, we recommend investors to book profit on strength,” he added.
Overall, trading volumes increased to 248 million shares compared with Thursday’s tally of 233 million.
Shares of 370 companies were traded. At the end of the day, 180 stocks closed higher, 164 declined while 26 remained unchanged. The value of shares traded during the day was Rs14.6 billion.
Engro Polymer (XD) was the volume leader with 16.3 million shares, gaining Rs0.76 to close at Rs37.70. It was followed by Sui Northern Gas Pipelines with 12.9 million shares, gaining Rs3.35 to close at Rs117.66 and TRG Pakistan with 10.7 million shares, gaining Rs0.57 to close at Rs36.23.
Foreign institutional investors were net buyers of Rs246.9 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.