Stocks gain on expected financial support from China, Saudi Arabia

Stocks gained on Monday on reports that allies Saudi Arabia and China have has offered 13 billion rescue package for the economy.

The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index gained 191.05 points or 0.46 percent to close at 42,047.36 points. The highest index of the day remained at 42,206.96 points while the lowest level of the day was recorded at 41,856.31 points.

Analyst Ahsan Mehanti at Arif Habib Corp said stock closed higher after finance minister assured financeing from China and Saudi Arabia and reports of record receipts $5.295 in RDAs.

“A stronger rupee also played a catalyst role in a positive close,” he said. KSE-30 index also increased by 73.13 points or 0.48 percent to close at 15,299.90 points.

Traded shares decreased by 58 million shares to 240.219 million shares from 298.098 million shares. The trading value dropped to Rs5.447 billion from Rs5.465 billion. Market capital expanded to Rs6.751 trillion from Rs6.733 trillion. Out of 336 companies active in the session, 188 closed in green, 120 in red and 28 remained unchanged.

Analyst Ali Najib at Topline Securities, said equities had a positive day and the benchmark index opened in a green zone, stayed positive throughout the day and eventually settled 0.46 percent up at the close.

“The sentiment above is attributed to a $13 billion assurance with regards to rolling over of upcoming debt payments from China and Saudi Arabia.” During the day, TRG, ENGOR, HUBC, POL & PPL added 70 points, cumulatively. On the flip side, HMB, EFERT and THALL witnessed some profit-taking as they lost 22 points.

The highest increase was recorded in shares of Khyber TobaccoXB, which rose by Rs30.22 to Rs433.22 per share, followed by Bhanero Tex.XD, which increased by Rs17.94 to Rs1,000 per share. A significant decline was noted in Siemens Pak shares, which fell by Rs38.72 to Rs851.28 per share, followed by Ismail IndXD, which decreased by Rs33.25 to Rs420 per share.

Brokerage Arif Habib Ltd said the new week got off to a solid start for the PSX with strong momentum. “The benchmark index opened in the green and moved in the same range throughout the day, due to favourable expectations of monetary inflows from Saudi Arabia and China, as well as attractive valuations of stocks kept the investors involved in the market.”

“The 3rd tier stocks had respectable volumes while overall volumes remained robust,” it added. Sectors contributing to the performance included technology & communication (+36.9 points), E&P’s (+31.4 points), OMC’s (+23.4 points), power generation & distribution (+21.5 points) and commercial banks (+16.8 points).

WorldCall Telecom remained the volume leader with 43.511 million shares that increased by 4 paisas to Rs1.61 per share. It was followed by Dewan Motors with 17.750 million shares that closed higher by 25 paisas to Rs11.41 per share.

Other stocks that recorded significant turnover included Hascol Petrol, Sui South Gas, TPL Properties, PTCL, Faysal Bank, Hum Network, Netsol Tech. and TRG Pak Ltd. Shares’ turnover in the future contracts decreased to 53.090 million shares from 54.997 million shares.