Third successive gain: KSE-100 up 0.33% after China pledges assistance to Pakistan

The Pakistan Stock Exchange (PSX) saw an optimistic session on Wednesday and the KSE-100 index rose 0.33% after China pledged assistance for Pakistan during Prime Minister Shehbaz Sharif’s visit to the neighbouring nation.

China’s state media on Wednesday quoted President Xi Jinping saying that his country will continue to support Pakistan in stabilising its financial situation and both sides agreed to accelerate work on China-Pakistan Economic Corridor (CPEC) projects. This rejuvenated investor interest in the equity market and they made fresh purchases.

KSE-100 surges 1.32% as market expects positive outcome from govt’s visit to China

By the end of the session, the KSE-100 Index closed with a gain of 135.9 points or 0.33% to close at 41,944.59 points.

Beginning with a dip, the market recouped losses and staged a modest recovery in early hours. While the KSE-100 Index remained range-bound for most part of the day, the final hour saw a buying spree that notched up the gains.

Index-heavy automobile, fertiliser and oil segments closed with gains but chemical and banking sectors closed on a mixed note. On the other hand, cement sector closed with modest losses.

Capital Stake, in its report, said that continuing with the positive trend for third consecutive session, the PSX once again closed in green.

“Indices traded in green for most part of the day while volumes surged from previous close,” it said. “Claims from China to support Pakistan in restabilising its economy during Prime Minister Shehbaz Sharif’s visit helped restore Investors’ confidence in the market.”

A report from Arif Habib Limited stated that another positive session was witnessed at the PSX.

“The benchmark KSE-100 Index traded in the green for majority of the session, maintaining the momentum from the previous session, as investors remained hopeful for positive outcomes from the prime minister’s visit to China,” it said. “Volumes improved significantly in the main board yet third tier stocks remained in the limelight.”

On the economic front, rupee registered a depreciation of Re0.78 or 0.35% in the inter-bank on Wednesday and closed at 221.43.

Sectors driving the benchmark KSE-100 index north included oil and gas exploration (59.47 points), power generation and distribution (48.20 points) and oil and gas marketing (39.01 points).

Volume on the all-share index jumped to 230.6 million from 192.2 million on Tuesday. Similarly, the value of shares traded fell to Rs6.2 billion from Rs6.3 billion recorded in the previous session.

Hascol was the volume leader with 55.7 million shares, followed by WorldCall Telecom with 23.6 million shares and Cnergyico PK with 16.1 million shares

Shares of 353 companies were traded on Wednesday, of which 156 registered an increase, 166 recorded a fall, and 31 remained unchanged.