Pakistan stocks gain 1,215.89 points on positive developments

KARACHI: The Pakistan stocks rebounded 2.76 per cent on the first day of the week on the back of several positive developments, with declining oil price topping the list, dealers said.

An analyst at Pearl Securities said the international oil prices fell 10 per cent, amid new Covid-19 variant, while the Federal Cabinet approved $4.2 billion worth of loan agreements with Saudi Arabia.

“Moreover, foreign selling related to the MSCI was reportedly absorbed and ease in the monetary tightening, owing to the new Covid-19 variant spreading globally lifted [the] market sentiment.”

Cumulatively, the banking, cement, and E&P sector fuelled 612 points to the index.

The Pakistan Stock Exchange KSE-100 shares Index gained 2.76 per cent, or 1,215.89 points, to close at 45,330.05 points. The KSE-30 shares Index gained 3.03 per cent, or 516.47 points, to close at 17,550.49 points.

As many as 358 scrips were active, of which 263 advanced, 76 declined and 19 remained unchanged. The ready market volumes stood at 268.23 million shares, compared with the turnover of 289.8 million shares in the last trading session.

An analyst at Arif Habib Limited said the KSE-100 Index witnessed a bull-run, as it gained more than 1,200 points in intraday trading to cross 45,000 points, lifted by the Cabinet approval to revive Saudi Arabia’s $3 billion support package for Pakistan in safe deposits and $1.2 billion worth of oil supplies on deferred payments.

“Major dip in crude oil prices created positive momentum in the market, despite the emergence of a new variant of Covid-19. The perception of investors towards last leg of foreign selling spree being completed last week created opportunity for [the] intraday traders.”

Going forward, analysts expect the market activities to keep moving north, and recommend investors to adopt a “buy on dip” strategy in the ongoing week.

The highest volumes were witnessed in Fauji Foods (Rights) with a turnover of 14.85 million shares. The scrip shed 31 paisas to close at 82 paisas/share; followed by TPL Properties with a turnover of 14.74 million shares. It gained Rs2.57 to close at Rs45.80/share. WorldCall Telecom remained the third with a turnover of 13.69 million shares. It gained one paisa to finish at Rs2.12.