PSX adds 485 points over positive triggers

KARACHI: The Pakistan stocks market closed higher on Monday as the investors’ activity increased in the gas sector owing to news flows regarding the government’s plans to cut circular debt, analysts said.

An analyst Pearl Securities said that the benchmark KSE-100 Index started the week with a bullish momentum and remained positive throughout the day with volumes remaining subdued.

“The market is responding positively to the news that the government plans to cut the circular debt in the gas sector by 70 per cent. Further, the Sindh High Court’s verdict against the super tax also triggered the investors’ confidence,” he added.

However, in order to restart the stalled International Monetary Fund (IMF) programme, the IMF has issued lists of necessary steps and requests that must be implemented in the next 15 to 20 days, he remarked.

The Pakistan Stock Exchange KSE-100 shares Index gained 485.96 points, or 1.23 per cent, to close at 40,155.16 points. The KSE-30 shares Index gained 177.74 points, or 1.22 per cent, to close at 14,778.32 points.

As many as 329 scrips were active of which 207 advanced, 108 declined and 14 remained unchanged.

The ready market volumes stood at 146.88 million shares, compared with the turnover of 132.63 million shares in the last trading session.

An analyst at Arif Habib Limited said that the stocks opened in a positive zone and stayed green throughout the trading session.

“The investors’ participation remained healthy in the exploration and production (E&P) sector on the expectation of resolution of gas circular debt. Robust volumes were observed in the main board, while the third-tier stocks remained in the limelight,” he added.

Going forward, the analysts expect the market to remain under pressure due to political encounters between Punjab and the federal government and disrupt economic conditions. Hence, suggest investors adopt the “Sell on Strength” strategy in the upcoming sessions.

The companies which reflected the highest gains included Nestle Pakistan up Rs364.87 to close at Rs5,229.87/share, and Bata (Pak) up Rs99 to close at Rs1, 599/share.

The companies which reflected the most losses included Bhanero Textile down Rs72.93 to close at Rs1,051.01/share, and Pak Tobacco down Rs57 to close at Rs915/share.

The highest volumes were witnessed in Pak Petroleum with a turnover of 11.05 million shares. The scrip gained Rs4.31 to close at Rs61.78/share, followed by Oil and Gas Development Company with a turnover of 7.69 million shares. It gained Rs3.89 to close at Rs76.87/share. WorldCall Telecom remained the third with a turnover of 6.79 million shares. It gained three paisas to close at Rs1.23/share.

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