KARACHI: The expected relief in the mini-budget or economic reform package has kept the equity market bullish on Tuesday.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) gained 358 points to close at 39,902 points from previous day’s closing of 39,544 points.
The present government is going to present its second mini-budget which was said to be an economic reform package on January 23, 2019.
Finance Minister Asad Umar during his visit to Karachi recently announced that the stock market would have good new in such reform package.
The market is anticipating that the advance tax on sale and purchase of shares would be abolished. Besides, the market also expecting changes in capital gain tax regime.
Analysts at Arif Habib Limited said KSE-100 index maintained the up-tick on the back of positive expectations from the mini-budget.
Activity was observed across the board, however, scrips that were in the limelight include OGDC and PPL, which had international crude prices favoring the outlook.
POL dipped slightly after announcement of half yearly result, which stood lower than expected.
Banking sector scrips, HBL and UBL, both continued rallying on positive sentiments and made recent times high above 140 and 145 levels respectively.
Among the Chemical sector, EPCL grew on the basis of increase in weekly margins. LOTCHEM, though remained contained but saw healthy demand at a certain price level below 13.
Sectors contributing to the performance include Banks (+158 points), Fertilizer (+48 points), Power (+39 points), Cement (+32 points), E&P (+17 points), Pharma (-12 points).
Volumes bounced back from 124.4 million shares to 136.7 million shares (+10 percent DoD).
Average traded value also increased by 14 percent to reach $ 49 million as against $ 43 million.
Stocks that contributed significantly to the volumes include TRG, FFL, KEL, BOP and EPCL, which formed 33 percent of total volumes.