Positive developments reinforced market confidence at the Pakistan Stock Exchange (PSX) on Monday as the benchmark KSE-100 index extended the rally for the second session and gained 1.78% to close over the 43,500-point mark.
The positive trend stemmed on the back of persistent appreciation of the rupee against the US dollar, decline in Pakistan International Bond yields and encouraging developments on the International Monetary Fund (IMF) front.
Investors took cue from the news flow, and buying activity helped the KSE-100 close higher by 764.25 points or 1.78%. The index settled at 43,621.82 points by the end of the session.
KSE-100 posts 614-point gain, edges close to 42,900
The index had opened with a jump and the market rose steadily throughout the day. Combination of good news helped sustain the rally at the equity market.
Investment poured in index-heavy automobile, cement, bank and oil sectors.
Last week, the benchmark KSE-100 index surged by 761.33 points on a week-on-week basis and closed at 42,857.57 points on Friday.
The market sentiment was bolstered further after it was reported that Saudi Arabia plans to renew its $3-billion deposit in assistance to Pakistan, while also intending to provide $100 million per month for 10 months in petroleum products that would be granted as additional support.
It was learnt that the Saudi Ministry of Finance plans to renew its $3 billion deposit with the State Bank of Pakistan (SBP) as soon as this week.
The additional support would mean Pakistan’s funding gap, as the International Monetary Fund (IMF) calls it, has been covered after Saudi Arabia’s commitment.
The assurance will pave way for the IMF board’s approval at the end of the month.
Furthermore, the rupee continued its winning momentum against the US dollar and appreciated for the 10th successive session on Monday to close at 213.98 in the inter-bank market.
10th successive gain: Rupee closes near 214 against US dollar
A report from Topline Securities stated Pakistan equities closed positive where the benchmark KSE-100 Index settled at 43,622 level (up 1.78%).
“Market opened on a positive note and remained positive throughout the day where the market made an intra-day high of 801 points over rupee’s appreciation against the US dollar, lower international oil prices and plans of renewal of $3 billion deposit from Saudi Arabia,” it said.
It added that additional support of $100 million a month for 10 months in petroleum products also lent support.
Sectors contributing towards the increase included engineering (3.2%), technology (2.6%) and power (2.6%).
Volume on the all-share index spiked to 541.55 million from 373.85 million on Friday. Similarly, the value of shares traded inched up to Rs16.8 billion from Rs10.6 billion recorded in the previous session.
K-Electric was the volume leader with 58.6 million shares, followed by Pak Refinery with 38.7 million shares, and WorldCall Telecom with 37.7 million shares.
Shares of 368 companies were traded on Monday, of which 272 registered an increase, 75 recorded a fall, and 21 remained unchanged.