Merry-run continues at PSX as oil/gas sector attracts attention

Positive momentum persisted at the Pakistan Stock Exchange (PSX) on Wednesday as its benchmark KSE-100 index closed 368 points higher, aided by some positive developments on the economic front.

The KSE-100 started the session with a strong buying spree as it hit an intra-day high of 65,063.08.

The benchmark index witnessed some late-session consolidation and settled at 64,822.43, up by 368.21 points or 0.57% as compared to the previous close.

Heavy interest was seen in OGDC and PPL amid unconfirmed reports over the circular debt management plan, while sectors such as cement and technology also traded in the green.

The positive run continues from Tuesday when the benchmark KSE-100 Index was up 515 points to settle at 64,454.22.

Experts, meanwhile, attributed the ongoing buying spree to several positive developments on the economic front.

The State Bank of Pakistan (SBP) has decided to revamp the foreign exchange trading system and announced to introduce a Centralised Foreign Exchange (FX) Trading Platform called “FX Matching” for the interbank FX market to bring more transparency to the interbank market.

Also, the Government of Pakistan has executed the Petroleum Concession Agreements (PCA) & Exploration Licences (EL) for eight blocks with four companies: United Energy Pakistan Limited (UEP), Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Pakistan Oilfields Limited (POL).

Analysts said this centralised trading platform will reduce volatility in the interbank market and support a free and fair FX trading system.

Globally, Asian shares rose on Wednesday on optimism that Chinese authorities will offer support for its stock markets, which have plummeted to multi-year lows, while a hawkish tilt from the Bank of Japan lifted the yen.

The MSCI’s broadest index of Asia-Pacific shares outside Japan, opens new tab was 0.27% higher. Still, the index is down 5% in January, set for its worst monthly performance since August.

The focus in Asia has squarely been on Chinese equity markets after a wretched start to the year. A report on Tuesday said that authorities were preparing a package of measures worth $278 billion to stabilise the market offered some hope the markets may steady though investors remained sceptical and unimpressed.

Meanwhile, the rupee continued to inch upward against the US dollar for the sixth successive session, appreciating 0.04% in the inter-bank market on Wednesday. As per the State Bank of Pakistan (SBP), the local unit closed at 279.67 after a gain of Re0.12 against the greenback.

Volume on the all-share index increased to 480 million from 426 million a session before.

The value of shares declined to Rs22.5 billion from Rs25 billion in the previous session.

K-Electric Ltd. was the volume leader with 67.8 million shares, followed by Hascol Petrol with 39.6 million shares, and Pak Petroleum at 34.4 million shares.

Shares of 353 companies were traded on Wednesday, of which 199 registered an increase, 131 recorded a fall, while 23 remained unchanged.