KARACHI: The share market witnessed a robust increase of 170 points on Friday, propelled by the rebalancing of international stock markets and improved sentiments ahead of the forthcoming Monetary Policy Statement (MPS).
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 42,504 points, showcasing a notable gain from the previous day’s closing at 42,334 points.
Financial analysts at Arif Habib Limited noted that the market exhibited positive responses right before the scheduled announcement of the Monetary Policy on Monday, September 21st, along with the rebalancing of FTSE. This positivity translated into price gains on the index, with prominent stocks such as OGDC, PSO, ENGRO, and UBL contributing to the uptrend.
Unity Foods (UNITY) stood out with brisk activity and high volumes, hitting the upper circuit. The surge was fueled by expectations of higher earnings, short-sell positions, and the anticipation of right shares credited to investors’ accounts on September 25th.
A rebound in international crude oil prices played a crucial role in the market’s performance. Oil and Gas Development Company Limited (OGDC), Pakistan Petroleum Limited (PPL), and particularly Pakistan Oilfields Limited (POL) experienced recovery. Karachi Electric (KEL) also witnessed high volumes among power sector stocks.
While the cement sector faced selling pressure, the impact on stock prices remained moderate. The transport sector led the volumes with 78.1 million shares, followed by power (76.4 million) and food (66.9 million).
In terms of individual stocks, Pakistan International Bulk Terminal Limited (PIBTL) led the volumes with 75.5 million shares, followed by UNITY (45.3 million) and Fauji Foods Limited (FFL) with 38.8 million shares.
Various sectors contributed to the overall market performance, with Exploration and Production (E&P) leading with 75 points, followed by banks (72 points), fertilizer (35 points), autos (15 points), and transport (13 points).
The total volume of shares increased marginally from 508.6 million to 516.1 million shares, marking a 1 percent day-on-day increase. However, the average traded value saw a slight decrease of 10 percent, reaching US$ 81.9 million compared to US$ 90.8 million.
Significant contributors to the overall market volumes included PIBTL, UNITY, FFL, KAPCO, and KEL, accounting for 45 percent of the total volumes.
Stocks that played a positive role in influencing the index included OGDC (+43 points), Fauji Fertilizer Company Limited (FFC) (+28 points), UBL (+27 points), MCB Bank Limited (MEBL) (+20 points), and POL (+15 points). Conversely, stocks like Kot Addu Power Company Limited (KAPCO) (-19 points), Dawood Hercules Corporation Limited (DAWH) (-14 points), Pak Tobacco Company Limited (PAKT) (-9 points), Engro Polymer and Chemicals Limited (EPCL) (-7 points), and Lucky Cement Limited (LUCK) (-7 points) contributed negatively.
