The Pakistan Stock Exchange (PSX) snapped its five-session losing streak on Wednesday and climbed 0.37% as approval of $1.2 billion loan tranche by the International Monetary Fund (IMF) strengthened investor sentiment.
As a result, the KSE-100 closed with a gain of 155.89 points or 0.37% at 42,351.15 level.
The equity market witnessed a turbulent trading day as the trend depicted multiple spikes and dips.
Despite revival of IMF programme, KSE-100 falls 0.73%
Following a brief open in the positive zone, the market fell to intra-day low value within initial minutes. Buying pressure emerged at this point and propelled the KSE-100 index upward. Towards midday, the market reversed its trend, driven by sell-off from participants and traded flat.
A renewed buying spell in the final hour helped the KSE-100 index close with gains.
While cement and oil sector scrips saw modest buying activity, automobile space recorded sell off and closed with losses. Banks and fertiliser sectors closed on a mixed note.
A report from Capital Stake cited that positive sentiments brewed at the PSX on Wednesday.
“Indices swayed in both directions until finally choosing upward direction, while volumes plunged from last close,” it said.
It added that the positive trend was attributable to the approval of release of a $1.1 billion loan tranche by IMF.
A report from Arif Habib Limited stated that the market opened in the negative zone due to prevailing political noise.
“The benchmark KSE-100 index witnessed a range-bound session as investors remained on the sidelines awaiting for clarity on the political front,” the report stated. “However, during the last trading hour, value buying was observed in the cement sector which helped the index to close in the green zone.”
Volumes remained dry in the main board although hefty volumes were witnessed in the third tier stocks.
On the economic front, Pakistan’s rupee strengthened further against the US dollar and appreciated 0.63% or Rs1.37 to close at Rs218.75.
Rupee extends gains, closes at 218.75 against US dollar
Sectors driving the benchmark KSE-100 north included cement (75.26 points), chemical (32.26 points) and fertiliser (23.07 points).
Volume on the all-share index fell to 181.27 million from 237.7 million on Tuesday. On the other hand, the value of shares traded contracted to Rs7.2 billion from Rs7.32 billion recorded in the previous session.
K-Electric was the volume leader with 15.1 million shares, followed by Unity Foods with 10.98 million shares and Engro Polymer XD with 10.26 million shares.
Shares of 339 companies were traded on Wednesday, of which 173 registered an increase, 143 recorded a fall, and 23 remained unchanged.
Source: Brecorder
