Stock market rises on budget optimism

Market watch
Stock market rises on budget optimism
Benchmark KSE-100 index gains 182.80 points to settle at 41,735.96
OUR CORRESPONDENT
KARACHI
Bullish activity dominated trading at the Pakistan Stock Exchange on Thursday as National Economic Council’s (NEC) approval of 5% growth target for FY23 fuelled investor interest.
Reports of Rs2.2 trillion national development outlay proposed for fiscal year 2022-23 further boosted investors’ confidence.
Moreover, there was optimism during the trading session on the back of expectation of tax relief in the upcoming budget for various sectors.
The KSE-100 index remained positive throughout the day due to the strengthening of Pakistani rupee against the US dollar and the accumulation of value stocks. However, profit-taking erased some of the gains later.
Oil stocks outperformed the market on surging global crude prices, whereas the banking sector came under pressure over Moody’s negative outlook for five banks.
Moreover, selected stocks on the back of pre-budget speculation helped the benchmark index to close in the green.
At close, the benchmark KSE-100 index recorded an increase of 182.80 points, or 0.44%, to settle at 41,735.96 points.
Topline Securities, in its report, said that Pakistan equities had a positive day on news of likely conclusion of IMF staff-level agreement next week.
The KSE-100 index initially opened in the green zone, stayed positive for the entire day and settled at 41,736 (+183 points, or 0.44%) for the day.
During the day, the benchmark index hit an intra-day high at 41,995 (+442 points, or 1.06%) but profit-taking took place, which pushed the index to shed some intra-day gains, Topline said.
Technology, fertiliser, E&P and power sectors’ stocks contributed positively to the benchmark index where Systems Limited, Dawood Hercules, Pakistan Oilfields and Hubco added 91 points cumulatively.
On the flip side, Meezan Bank, HBL and Bank AL Habib faced some profit-taking as they lost 32 points collectively, it said.
Around 235 million shares were traded at the bourse while the total value came in at Rs5.5 billion. TPL Properties was the volume leader with trading in 31.8 million shares.