The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index closed higher for fourth consecutive session on Thursday, continuing a robust momentum on an euphoria about first review of the IMF’s $3 billion Stand-by-Arrangement (SBA).
A significant decline in yields in the latest T-bill auction also contributed in the bullish close.
The KSE-100 started the session positive, but soon profit-taking took it to an intra-day low of 52,239.59.
However, the market regained in later part of the day and closed at 52,656.76, up by 314.12 points or 0.60%.
“The day started on a positive note as yesterday’s bullish momentum carried forward by market participants initially. However, some profit taking kicked off subsequently, but investors continued their shopping which help market to sustain its current rally,” brokerage house Topline Securities said in its post-market report.
The aforesaid trend could be attributed to decline in bonds yields in yesterday’s T-bill auction where yields got slashed by 25, 41 & 40 bps in 3, 6 & 12 months papers, respectively, it added.
“In addition, cooling off in international oil prices (post Federal Reserve decision to maintain interest rates) lured investors towards cyclical sector stocks,” it said.
During the day, cement, power, textile, fertiliser, and banking sector’s stocks contributed positively as LUCK, HUBC, ILP, FFC & HBL added 198 points. On the other hand, some stocks like MEBL, MCB and DAWH experienced profit-taking, resulting in a combined loss of 59 points, Topline Securities stated.
On Wednesday, the KSE-100 closed higher by 422 points.
On the economic front, the Pakistani rupee lost value against the US dollar for the ninth successive session as it depreciated 0.28% in the inter-bank market on Thursday. As per the State Bank of Pakistan, the local currency settled at 283.43, a decrease of Re0.78.
Volume on the all-share index decreased to 475.08 million from 526.46 million a session before.
The value of shares decreased to Rs14.5 billion from Rs16.5 billion in the previous session.
WorldCall Telecom remained the volume leader with 39.1 million shares, followed by TPL Properties with 30.3 million shares and Pak Refinery with 26 million shares.
Shares of 354 companies were traded on Thursday, of which 194 registered an increase, 135 recorded a fall, while 25 remained unchanged.
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