KARACHI: The stock market resumed its record-setting spree after a two-day break on Thursday as investors continued value-hunting for improved external funding prospects following the signing of an agreement with the International Monetary Fund (IMF). This helped the benchmark index close at an all-time high.
Ahsan Mehanti of Arif Habib Corporation said stocks closed at an all-time high as investors weighed Fitch ratings’ projections for a cut in the State Bank of Pakistan’s policy rate to 16pc by the end of 2024 and 14pc by 2025 on slowing inflation, economic expansion of 3.2pc on the back of high agri growth, easing monetary policy, slowing inflation and cut in fiscal deficit to 6.7pc in FY25.
He added that the agreement for a $7 bn loan to push for IMF-mandated fiscal reforms played a catalyst role in the bullish close.
Topline Securities Ltd said the Pakistan stock market showed strong momentum, achieving a new peak. The market’s positive movement was driven by sectors such as fertiliser, exploration and production, banking, and auto, supported by companies like Engro Corporation, United Bank, Oil and Gas Development Company, Millat Tractor Ltd, and Meezan Bank, collectively contributing 423 points.
As a result, the benchmark index hit an intraday record high of 81,909.95 points and a low of 81,418.12. However, the index settled at 81,839.86 after adding 684.25 points or 0.84 per cent on a day-on-day basis.
The overall trading volume edged up 6.56pc to 470.31 million shares. However, the traded value fell 6.89pc to Rs25.34bn on a day-on-day basis.
Stocks contributing significantly to the traded volume included Pak Elektron (47.99m shares), PIA Holding Co (25.36m shares), PTCL (25.02m shares), Fauji Fertiliser (23.54m shares) and WorldCall Telecom (17.26m shares.
The shares registering the most significant increases in their share prices in absolute terms were Rafhan Maize (Rs130.00), PIA Holding Ltd (B) (Rs80.87), Ismail Industries (Rs60.79), Unilever Foods (Rs58.73) and Reliance Cotton (Rs35.81)
The companies registering significant decreases in their share prices in absolute terms were Pak Tobacco (Rs69.75), Data Agro (Rs34.90), Atlas Honda (Rs15.31), Philip Morris (Rs8.62) and JS Global Capital (Rs7.61).
Foreign investors remained net buyers as they purchased shares worth $1.45m.
Published in Dawn, July 19th, 2024
