KARACHI: Stocks started the first day of the week on a positive note and closed higher Monday amid thin inflation and the finance minister’s statement of a larger and longer bailout agreement with the IMF.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 share Index increased by 379.37 points or 0.48 per cent to 78,824.33 points against 78,444.96 points recorded in the last session. The highest index of the day remained at 79,536.23 points while the lowest level was recorded at 78,427.80 points.
Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed higher amid thin CPI inflation at 12.6 per cent YoY in June 24 and FM affirmation for larger and longer bailout agreement with the IMF this month amid progressive positive talks for the $6-$8 billion deal.”
He said the government’s plan for the issue of $1.5 billion panda bonds and Euro/Sukuk bonds to seek foreign inflows and its resolve to solving circular debt crises played a catalyst role in the bullish activity in the PSX.
The KSE-30 index increased by 87.24 points or 0.35 per cent to 25,369.27 points against 25,282.04 points.
Traded shares decreased by 41 million shares to 306.038 million shares from 347.671 million shares. The trading value increased to Rs13.746 billion from Rs11.899 billion. Market capital expanded to Rs10.432 trillion against Rs10.374 trillion. Of 425 companies active in the session, 183 closed in green, 186 in red and 56 remained unchanged.
Maaz Mulla, an analyst at Topline Securities, said the stock market began the week on a positive note where the KSE-100 index made intraday high of 1,091 points (1.39 per cent) to close at 78,824 (379 points). The market witnessed profit booking in the second half.
The consumer price index (CPI) for June 2024 clocked in at 12.6 per cent YoY, compared to 11.8 per cent YoY last month. On a monthly basis, CPI rose 0.5 per cent in June 2024 as compared to a decrease of 3.2 per cent in the previous month. Moreover, petrol prices in Pakistan increased by Rs7.45 per litre, rising from Rs258.16 to Rs265.61 for the next fortnight, due to fluctuations in global oil rates.
The highest increase was recorded in Pakistan Tobacco Company Limited shares, which rose by Rs89.71 to Rs1,169.14 per share, followed by Service Industries Limited, which increased by Rs53.59 to Rs1,004.42 per share. A significant decline was noted in Unilever Pakistan Foods Limited, which fell by Rs180.60 to Rs18,316 per share, Nestle Pakistan Limited followed it, which closed lower by Rs153.22 to Rs7,000.95 per share.
The cement sector attracted investor interest as the industry increased the price of a bag by approximately Rs125 in the south region, effective from July 1, 2024, to offset the impact of higher FED. As a result, KOHC and PIOC closed positively, while LUCK, CHCC, and DGKC closed negatively.
Key contributors to the positivity included PPL, EFERT, UBL, SRVI and PAKT which collectively contributed 274 points to the index and on the flipside Engro, LUCK, MARI, CHCC and THALL collectively contributed 102 to the declining index.
PTCL remained the volume leader with 30.206 million shares which closed higher by 61 paisas to Rs12.65 per share. WorldCall Telecom followed it with 17.351 million shares, which closed lower by one paisa to Rs1.25 per share.
Other significant turnover stocks included Faysal Bank, PIA Holding Company, Fauji Fert Bin, Pervez Ahmed Co, Pak Petroleum, Unity Foods Ltd, Cnergyico PK and Oil & Gas Dev.In the futures market, 306 companies recorded trading, of which 141 increased, 158 decreased and 7 remained unchanged.