Pakistan equity market remains in green zone; Index gains 870 points

KARACHI: The Pakistan stocks rebounded on Wednesday, as the international market turned green, while the commodity prices showed signs of weakness.

“The current account deficit reduced to $1.1 billion in September 2021, compared with $1.47 billion in August 2021. The net foreign direct investment in Pakistan soared to $236 million in September 21, signalling a revival of confidence among [the] long-term global investors in the economy,” an analyst at Pearl Securities said.

The Pakistan Stock Exchange KSE-100 shares index gained 1.95 per cent, or 870.01 points, to close at 45,499.46 points. The KSE-30 shares index gained 2.11 per cent, or 368.99 points, to close at 17,824.53 points.

As many as 361 scrips were active, of which 274 advanced, 79 declined and eight remained unchanged. The ready market volumes stood at 308.18 million shares compared with the turnover of 248.29 million shares in the last trading session.

An analyst at Arif Habib Limited said, as the news of resumption of dialogue with the International Monetary Fund (IMF) team relayed, investors’ concerns over the package started dissipating, causing the index to make an upward swing.

“Cement, technology, banks and fertiliser stocks remained in the limelight. Cement stocks led the index on [the] news of cement companies, increasing the price/bag, whereas dwindling outflows from foreign counters in banks and fertiliser stocks also helped these sectors post healthy gains.”

On the results side, United Bank Limited (UBL) announced its nine months EPS of Rs17.76, up 42 per cent, with a dividend payout of Rs4/share.

“Going forward, investors are advised to avail any downward correction in the market, as buying opportunities in mainly blue-chip stocks,” Neelam Naz at JS Global said.

The companies, which reflected the highest gains included Sapphire Textile, up Rs81 to close at Rs1,210/share; and Wyeth Pakistan, up Rs55.01 to close at Rs1,685/share.

The companies that reflected the most losses included Rafhan Maize, down Rs460.01 to close at Rs10,389.99/share; and Nestle Pakistan, down Rs124.99 to close at Rs5,775.01/share.

The highest volumes were witnessed in WorldCall Telecom with a turnover of 49.45 million shares. The scrip gained 25 paisas to close at Rs2.53/share; followed by Hum Network with a turnover of 24.77 million shares. It gained 36 paisas to close at Rs6.5/share. Byco Petrol remained the third with a turnover of 15.6 million shares. It gained 24 paisas to finish at Rs6.5.