Stocks surge as investors weigh positive cues

Benchmark KSE-100 index gains 826.78 points to settle at 41,878.57

KARACHI:

The Pakistan Stock Exchange (PSX) celebrated the positive cues on Monday as bulls returned to the market, who lifted the benchmark KSE-100 index by over 800 points.

 The KSE-100 index recorded a sharp recovery as investors expressed optimism about the probability of IMF sending a draft of the Memorandum of Economic and Financial Policies to Pakistan, reflecting progress on the resumption of $6 billion loan programme.

 Moreover, the investors cheered the Chinese funding of $2.3 billion, which was received by the State Bank, coupled with the $3.69 billion debt suspension, which aided value buying across the board.

 Market players showed satisfaction over further clarity about the newly imposed super tax, which was a onetime levy.

 In addition, the rupee recovery also remained one of the positive triggers at the bourse.

 Earlier, the trading session commenced on a positive note and it maintained the positive momentum throughout the day.

 Value buying at the end of the session led to an intraday high of 41,949.93 points, aiding the bullish close.

 At close, the benchmark KSE-100 index recorded an increase of 826.78 points, or 2.01%, to settle at 41,878.57 points.

 Topline Securities, in its report, said that Pakistan equities commenced the week on a positive note in the backdrop of arrival of Chinese funds of $2.

3 billion received by the country’s central bank over the weekend, progress on the resumption of IMF programme and window dressing factor ahead of the end of current fiscal year.

 The KSE-100 index initially opened on a positive, stayed positive throughout the day and eventually settled at 41,879 (+827 points; up 2.01%) for the day.

 E&P, Fertiliser, Tech and Banking sector stocks contributed positively to the index where Mari Petroleum Company, Fauji Fertiliser Company, Systems Limited, MCB Bank and Habib Bank added 250 points, cumulatively.

 On the flip side, Oil and Gas Development Company, Dawood Hercules Corporation and Pakistan Petroleum have witnessed some profit taking as they lost 18 points collectively today.

 Around 248m shares traded today at the bourse while total value clocked in at Rs7.4b.

 K-Electric led the volumes chart today with trading of 32m shares in it, today.

 A report of Arif Habib Limited stated that PSX witnessed a positive session today due to clarity on budgetary measures taken by the government imposing super tax also dubbed as “Poverty alleviation tax” on large corporate’s profitability pertaining to tax year 2022.

 Moreover, expectation of IMF will send a draft of the Memorandum of Economic and Financial Policies to Pakistan today driving optimism among investor triggering value buying across the board.

 KSE-100 index stayed in the green zone throughout the day.

 The Index closed at 41,878.57 points, up by 826.78 points (+2.01% DoD).

 Sectors contributing to the performance include Banks (+182.2pts), Fertiliser (+96.9pts), Cement (+93.3pts), Technology (+85.0pts) and E&P’s (+80.7pts). Volumes decreased from 424.4m shares to 247.9m shares (-41.5% DoD).

 Average traded value also decreased by 42.4% to reach $35.5m as against $61.6m.

 Stocks that contributed significantly to the volumes are K-Electric, Treet Corporation, Pakistan Refinery, TPL Properties and Cnergyico PK.

 JS Global analyst Mubashir Anis Naviwala said that bulls made a comeback today as index made an intra-day high of 41,950 (+898 points) eventually closing at 41,878, an increase of 827 points compared to Friday’s close.

 Traded volumes stood at 248m shares where K-Electric (8.0%), Treet Corporation (5.5%), Pakistan Refinery (2.0%), TPL Properties (3.7%) and Cnergyico PK (2.6%) were the major contributors.

 “Going forward, IMF agreement will remain the key driver for the market. We recommend investors to adopt buy on dip strategy in Banking and E&P sectors,” the analyst said.

 Overall trading volumes increased to 247.9 million shares compared with Friday’s tally of 424.2 million. The value of shares traded during the day was Rs7.37 billion. Shares of 333 companies were traded.

 At the end of the day, 228 stocks closed higher, 90 declined and 15 remained unchanged.

 K-Electric was the volume leader with 32.04 million shares, gaining Rs0.23 to close at Rs3.09.

 It was followed by Treet Corp with 19.9 million shares, gaining Rs1.56 to close at Rs30.12 and Unity Foods with 14.4 million shares, gaining Rs0.24 to close at Rs20.49. Foreign institutional investors were net buyers of Rs95.8 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.