KARACHI: The Pakistan equity market showed positive momentum on Monday as the government succeeded in the resumption of the International Monetary Fund (IMF) programme.
“The government was successful in increasing the loan amount by $2 billion, which increased investor confidence. Likewise, the rupee also gained stability as it clocked-in at Rs186.05 to dollar,” an analyst Pearl Securities said.
“The oil prices continue a downward trajectory hovering around $100/barrel. Moreover, the results of the companies are in line with the market expectations being on the positive side,” he added.
The Pakistan Stock Exchange KSE-100 shares Index gained 1.14 per cent, or 520.23 points, to close at 46,073.25 points. The KSE-30 shares Index gained 1.43 per cent, or 251.28 points, to close at 17,840.59 points.
The ready market volumes stood at 368.83 million shares compared with the turnover of 217.56 million shares in the last trading session.
Ahsan Mehanti at Arif Habib Corp said that stocks showed sharp recovery on the reports of IMF programme getting an extension of upto one year and increasing the loan size to $8 billion.
“The industrialists battered on a likely major surge in the energy and petroleum prices on the IMF’s seventh review due next month. Strong rupee recovery and record financial results in oil, banking and fertilizer sector played a catalyst role in bullish close,” he added.
Going forward, the analysts expect the market to remain under pressure. Hence, suggesting investors adopt the “Buy on Dip” strategy in the upcoming week.
The companies which reflected the highest gains included Bata (Pak) up Rs99.99 to close at Rs22,99.99/share, and Nestle Pakistan up Rs81.87 to close at Rs5,700/share.
The companies that reflected the most losses included Sanofi-Aventis(XD) down Rs21 to close at Rs903/share, and Thal Ind Corp down Rs9 to close at Rs260/share.
The highest volumes were witnessed in Hum Network with a turnover of 46.87 million shares. The scrip gained 30 paisas to close at Rs5.51/share, followed by Telecard Limited with a turnover of 35.49 million shares. It shed Rs1.08 to close at Rs14.21/share. WorldCall Telecom remained the third with a turnover of 31.98 million shares. It shed 10 paisas to finish at Rs1.71/share.
