Benchmark index rises 261.48 points to settle at 35,065.08. PHOTO: AFP
It will be the second budget of the current Pakistan Tehreek-e-Insaf (PTI) government, which is expected to reinstate zero-rating facility for the five major export-oriented sectors and provide further relief for other sectors.
The KSE-100 index started rising from the moment trading began and managed to power past the 35,000-point mark for the first time in almost three months. The market’s advance marked the second successive session in the green despite growing economic uncertainty.
The momentum continued for the entire day as the Asian Development Bank (ADB) approved a $500-million emergency loan to strengthen Pakistan’s Covid-19 health and economic response.
Some of the gains were erased after midday, nevertheless, strong investor sentiment helped the index close with a significant increase.
At close, the benchmark KSE-100 index recorded an increase of 261.48 points, or 0.75%, to settle at 35,065.08.
Arif Habib Limited, in its report, stated that the banking sector performed well with Bank Alfalah hitting its upper circuit and HBL, UBL and MCB also contributing positively to the index.
“Though crude oil prices remained under pressure, renewed interest in the exploration and production sector from investors in general and foreigners in particular helped stocks maintain a plateau,” the report said.
Furthermore, buying interest was also noted in chemical stocks, which had been in the limelight due to the Covid-19 pandemic and anticipated tax relief in the upcoming budget.
Engro Polymer and Chemicals, Descon Oxychem and Sitara Peroxide performed well whereas Lotte Chemical, after posting significant gains a day ago, registered a nominal decline.
Banking sector stocks topped the volumes with trading in 32.8 million shares, followed by technology firms (24.5 million) and chemical companies (23.1 million).
Among individual stocks, Pakistan Refinery Limited (R) registered trading volume of 11.7 million shares, followed by TRG Pakistan (10.8 million) and The Bank of Punjab (9 million).
Stocks that contributed positively to the index included HBL (+67 points), UBL (+59 points), Bank Alfalah (+37 points), Meezan Bank (+31 points) and MCB (+25 points).
Stocks that contributed negatively were OGDC (-21 points), Mari Petroleum (-14 points), EFU General Insurance (-6 points), International Steels (-4 points) and Hubco (-4 points).
JS Global analyst Danish Ladhani said the KSE-100 index closed on a bullish note, gaining 261 points (+0.8%) to close at 35,065. “The market remained positive following a pre-budget rally,” he added.
Fertiliser, exploration and production, and financial stocks were the major performers during the session. Moreover, second and third-tier stocks performed well.
Engro (0%), HBL (+4.1%), Fauji Fertiliser Company (+0.1%), MCB (+1.7%), Pakistan Petroleum (-0.1%), UBL (+4.9%) and Bank AL Habib (+2.2%) were the major index movers.
“Going forward, we expect the market to remain volatile and recommend investors to sell on strength ahead of budget announcement,” the analyst said.
Overall, trading volumes declined to 218.7 million shares compared with Tuesday’s tally of 238.3 million. The value of shares traded during the day was Rs7.96 billion.
Shares of 371 companies were traded. At the end of the day, 199 stocks closed higher, 152 declined and 20 remained unchanged.
Pakistan Refinery Limited (R) was the volume leader with 11.7 million shares, gaining Rs0.02 to close at Rs2.55. It was followed by TRG Pakistan with 10.9 million shares, gaining Rs0.33 to close at Rs28.56 and The Bank of Punjab with 8.9 million shares, gaining Rs0.27 to close at Rs9.09.
Foreign institutional investors were net sellers of Rs82.2 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.
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