KSE-100 index gains over 250 points on positive cues

• Massive recovery of rupee against US dollar triggered bullish sentiment among market players.
• Trading session kicked off in green and until midday, KSE-100 continued to fluctuate in a narrow range.
• At close, KSE-100 index closed at 42,716.97 points after gaining 0.61%.

KARACHI: The bears took a break from the Pakistan Stock Exchange (PSX) on Thursday as it surged into the green territory, with investors taking cues from the agreement between Pakistan and Chinese banks for inflows worth $2.3 billion.

Massive recovery of the rupee against the US dollar by 2.7% day-on-day in the interbank market triggered bullish sentiment among market players.

Moreover, constant assurance from Prime Minister Shehbaz Sharif and Finance Minister Miftah Ismail regarding the revival of the International Monetary Fund (IMF) loan program sparked optimism among market participants, who resorted to making fresh purchases.

Earlier, the trading session kicked off in the green and until midday, the benchmark KSE-100 index continued to fluctuate in a narrow range.

At close, the benchmark KSE-100 index closed at 42,716.97 points after gaining 258.83 points or 0.61%.

Arif Habib Limited in its post-market commentary noted that the benchmark KSE-100 index was dominated by the bulls today.

“Across the board rally was witnessed as Chinese consortium of banks signed an RMB 15 billion ($2.3 billion) loan facility agreement which resulted in the recovery of Pakistani rupee against the US dollar,” it stated.

Meanwhile, the volumes also remained healthy across the board. The independent power producers (IPP) sector remained in limelight as the Economic Coordination Committee (ECC) of the cabinet approved Rs149 billion for the power sector to be paid to the IPPs and K-Electric in the current fiscal year.

Sectors contributing to the performance included power (+74.8 points), banks (+52.2 points), technology (+26.4 points), oil marketing companies (+25.9 points) and cement (+15 points).

Shares of 347 companies were traded during the session. At the close of trading, 235 scrips closed in the green, 87 in the red, and 25 remained unchanged.

Overall trading volumes rose to 349.48 million shares compared with Wednesday’s tally of 266.09 million. The value of shares traded during the day was Rs10.13 billion.

Cnergyico PK Limited was the volume leader with 37.4 million shares traded, gaining Rs0.22 to close at Rs5.78. It was followed by Pakistan Refinery with 29.34 million shares traded, gaining Rs0.56 to close at Rs19.54 and K-Electric with 27.96 million shares traded, gaining Rs0.19 to close at Rs2.85.