Relief package improves sentiment as KSE-100 gains 343 points

A relief package announced by Prime Minister Imran Khan helped improve investor sentiment at the Pakistan Stock Exchange, as the benchmark KSE-100 Index jumped 0.77%, while volume and value of shares traded also increased on Tuesday.

The market opened on a positive note, as the KSE-100 Index crossed the 45,000-point level for a brief period.

However, by close on Tuesday, some of the intra-day gains were erased with the KSE-100 Index ending 342.57 points or 0.77% higher to settle at 44,803.58.

“Market opened gap up as investors cheered relief measures announced by PM Imran Khan on Monday,” said Topline Securities in its post-market comment.

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In a series of relief measures aimed at taming inflation, Khan announced a reduction in petrol and diesel prices, cut in electricity tariff, tax concessions for industries, and incentives for the IT sector.

AKD Securities, in its note, said the package announced on Monday will help the government gain political mileage at a time when the united opposition is putting it under pressure.

“The economic plan announced by PM Imran takes the street by surprise given the short-term nature of the incentives at the expense of long-term economic gains,” said the brokerage house.

“From the vantage of the equity market, OGDC and PPL may come in limelight as rumours of hefty payout gain further credence. IT sector also stands to benefit after a host of tax reforms announced by the GoP.

“However, we expect the short-term euphoria provided by the incentive package will fizzle out quickly as market finds out the long-term cost of the programme,” it added.

On the corporate front, TRG Pakistan unveiled its half-yearly results ended December 31, 2021, whereby the company suffered a net loss of Rs12.6 billion against net profit of Rs4.4 billion in the same period in 2020.

Sectors driving the benchmark index upwards included oil and gas exploration (132.96 points), technology and communication (92.43 points), and chemical (33.26 points).

Volume on the all-share index increased drastically to 309.35 million from 208.12 million on Monday. The value of shares traded also significantly improved to Rs10.45 billion from Rs6.06 billion recorded in the previous session.

WorldCall Limited was the volume leader with 29.9 million shares, followed by TPL Properties with 19.15 million shares, and TRG Pakistan Limited with 18.32 million shares.

Shares of 364 companies were traded on Tuesday, of which 226 registered an increase, 117 recorded a fall, and 21 remained unchanged.