Bulls maintained their hold over the Pakistan Stock Exchange on Wednesday as the KSE-100 index extended its rally and closed near the 65,000 mark on optimism about the settlement of power sector circular debt.
The market commenced the day with a spike as optimistic investors continued to cherry-pick stocks at attractive valuations in oil and banking sectors.
A strong buying interest was seen in the oil sector due to the government’s intention to partially settle the circular debt. Positivity was further boosted by expectations of status quo in the upcoming monetary policy announcement by the State Bank of Pakistan and the recovery of the rupee against the greenback, which aided investor spirits.
The stock market, after remaining in the green for most of the session, closed the day near the 65,000-point mark.
“Stocks closed bullish led by the oil sector on investor speculation about the government’s resolve to settle the power sector circular debt and Fitch Ratings’ hints at election outcomes for higher credit profiles,” said Arif Habib Corp MD Ahsan Mehanti.
“Rupee recovery and expectations of status quo in the SBP’s policy rate announcement on January 29 played the role of catalysts in bullish close at the PSX.”
At close, the benchmark KSE-100 index recorded an increase of 368.21 points, or 0.57%, and settled at 64,822.43.
Topline Securities, in its report, noted that the equity market experienced a positive trend.
“The aforesaid rally can be attributed to Oil and Gas Development Company, Bank AL Habib, Bank Alfalah, Attock Petroleum and Habib Metropolitan Bank as they collectively contributed 298 points to the index,” Topline added.
Read PSX recoups losses, surpasses 64,000 mark
Arif Habib Limited (AHL), in its review, remarked that the KSE-100 was moving towards 65,500 after having found support at 64,000 during the week.
“We are still anticipating a move to new all-time highs ahead of general elections in February,” it said. The onset of February would see the start of a seasonally unfavourable time window for equities, which would stretch into March, it added.
JS Global analyst Muhammad Shuja Qureshi noted that once again the KSE-100 index failed to breach the 65,000 level. Attock Petroleum, Air Link Communications and Dewan Cement closed at their respective upper circuits.
“Investors are advised to avail of any dips to accumulate value stocks,” the analyst added.
Overall trading volumes increased to 479.98 million shares against Tuesday’s tally of 425.7 million. The value of shares traded during the day was Rs22.5 billion.
Shares of 353 companies were traded. Of these, 199 stocks closed higher, 131 dropped and 23 remained unchanged.
K-Electric was the volume leader with trading in 67.8 million shares, losing Rs0.04 to close at Rs5.42. It was followed by Hascol Petroleum with 39.6 million shares, gaining Rs0.89 to close at Rs8.40 and Pakistan Petroleum with 34.5 million shares, gaining Rs1.03 to close at Rs127.70.
Foreign investors were net sellers of shares worth Rs966.9 million, according to the NCCPL.
Published in The Express Tribune, January 25th, 2024.
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