KARACHI: As the likelihood of a mini-budget diminished after the visiting International Monetary Fund (IMF) team appreciated an increase in the tax-to-GDP ratio from 8.8 per cent to 10.3pc, the stock market witnessed a robust across-the-board buying spree on Thursday.

This buying momentum propelled the KSE 100 index to surpass 94,000 for the first time, accompanied by an impressive trading volume of over one billion shares.

The benchmark KSE-100 index surged 934.55 points to hit an intraday record high of 94,289.97. However, it settled at 94,191.89 or 0.90pc day-on-day.

Topline Securities Ltd said this positive trend could be attributed to growing economic optimism, fuelled by reports that the IMF expressed no concerns over Pakistan’s progress in meeting revenue collection targets. As a result, fears of an imminent mini-budget and new taxation measures have eased.

As per the news report OGDC (2.51pc) from the E&P sector, the cash collection ratio rose to 121pc in 1QFY25, with management expecting this trend to continue as the IMF programme may prompt timely gas price adjustments to meet Sui companies’ revenue needs.

Investor interest surged in the banking sector following news that Pakistani banks secured temporary relief from the Islamabad High Court against a government tax linked to shortfalls in private-sector lending. This relief will remain in effect until a final decision is reached, with hearings scheduled to commence on Dec 3. Ahsan Mehanti of Arif Habib Corporation said stocks closed at an all-time high, led by blue chip scrips on a strong earnings outlook.

He added that the rupee stability, receding fears over the mini-budget, and the government’s assurance to IMF on $5bn external funding gap support from Saudi oil deferred payments and rollovers from China Exim Bank for project debts also contributed to bullish momentum at PSX.

The index was boosted by positive contributions from UBL, OGDC, HBL, MVB, and TRG, which collectively added 455 points.

The trading volume surged 34.35pc to 1.08bn shares, and its value increased slightly 3.13pc to Rs32.68 day-on-day.

Stocks contributing significantly to the traded volume included WorldCall Telecom (177.39m shares), Hascol Petroleum (59.22m shares), Treet Battery (47.94m shares), Sui Sou­thern Gas Company (42.74m shares) and Cnergyico PK (32.66m shares).

The shares registering the most significant increases in their prices in absolute terms were Rafhan Maize (Rs299.00), PIA Holding Co [B] (Rs68.74), Unilever Foods (Rs47.09), Service Industries (Rs43.91) and Mehmood Textile (Rs35.60).

The companies that suffered significant losses in their share prices in absolute terms were Pak Engineering (Rs67.74), Philip Morris (Rs37.45), Khyber Textile (Rs34.05), Abbott Laboratories (Rs25.85) and Haleon Pakistan (Rs17.90).

Foreigners remained net sellers as they sold shares worth $2.6m.

Published in Dawn, November 15th, 2024