Stocks fly for second day as IMF bailout in the wind - The News International - Financial Daily News Site

Stocks fly for second day as IMF bailout in the wind – The News International

Stocks rallied for a second day as investors saw a small rollback of fuel subsidies as a giant leap towards the resumption of a suspended IMF bailout, traders said on Friday.

Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Share Index closed higher by 319.74 points or 0.75 percent to 42,861.45 points against 42,541.71 points recorded in the last session.

Topline Securities in a note said sentiments were on the upside as the market made an intraday high of 1,013 points; however, some profit-taking was observed in the second half of the trading session.

“This positivity can be attributed to an increase in petroleum products prices by the government by 25 percent, which investors viewed as the first step towards a staff-level agreement with the IMF down the line,” the brokerage said.

A major contribution to the index came from FFC, OGDC, EPCL, MTL, and EPCL, as they cumulatively contributed 126 points to the index.

KSE-30 Shares Index also closed higher by 133.09 points or 0.82 percent to 16,276.12 points.

Trade volume increased by 180 million shares to 527.672 million from 347.068 million shares, while value increased to Rs13.974 billion from Rs9.042 billion.

Turnover in the futures contracts increased to 268.915 million shares from 232.579 million shares.

Market capital ticked up to Rs7.123 trillion from Rs7.066 trillion.

Out of 368 actives in the session, 223 advanced, 131 retreated, while 14 ended without a change.

Analyst Ahsan Mehanti at Arif Habib Corp said stocks closed bullish amid higher trades as investors’ concerns eased after the government increased petroleum prices, abolishing energy subsidies and paving way for the release of $900 million under IMF EFF programme.

Completion of 7th IMF loan review talks in Doha, discussions over federal budget due next month, and surging global equities led to a bullish close, he said.

Rafhan Maize was the top gainer of the day as it rose by Rs390 to Rs9,990 per share, followed by Sapphire Textile, up by Rs74.24 to Rs1,074.25 per share.

Philip Morris Pakistan emerged as the worst loser after shedding Rs43.47 to close at Rs536.53 per share, followed by Thal Industries Corporation that dropped Rs20.58 to Rs253.91 per share.

JS Research in its market wrap said the stocks reacted positively to the government’s announcement of a fuel price hike.

“Going forward, we expect the market to remain range-bound in the coming sessions due to political noise,” the brokerage said.

Arif Habib Ltd said the market witnessed a long-awaited bull run after the government finally announced to increase petroleum prices as a sign of resumption of IMF programme resumption, which also bolstered rupee against the dollar.

Cnergyico PK was the volume leader with 64.002 million shares. It closed higher by 14 paisas to Rs5.73 per share. It was followed by Pakistan Refinery that recorded 55.636 million shares. The stock fell by 9 paisas to Rs17.79 per share.

Other stocks that recorded significant turnover included WorldCall Telecom, Hum Network, Ghani Global Holding, Pak Elektron, Telecard Limited, K-Electric Ltd, Unity Foods Ltd and Fauji Foods Ltd.

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