Stock market climbs up 807 points on IPPs payment

Stock market climbs up 807 points on IPPs payment

KARACHI: The stock market gained 807 points on Tuesday owing to the government’s decision to pay the second installment to power companies.

The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 46,543 points as compared with the previous close of 45,736 points.

Analysts at Arif Habib Limited said that bullish momentum was witnessed just after the opening bell of the market mainly led by the power sector as the Economic Coordination Committee (ECC) of the Cabinet approved Rs134.783 billion for payment to independent Power Producers (IPPs) on second installment (60 percent) as per payment mechanism.

Appreciation of Pak rupee against dollar and PM decision not to increase the prices of petroleum products till November 30th gave investor confidence to the market.

Cement and E&P stocks contributed the most in the bull run. In the last trading hour, the technology sector made the journey to the north as TRG hit the upper circuit due to a rumor of a buy-back of shares.

On the institutional front, buying activity was witnessed across the board from the mutual funds.

Sectors contributing to the performance include Cement (+189.3 points), Technology (121.3 points), E&Ps (+104.0 points), Power (+78.5 points), and Banks (63.0 points).

Volumes increased from 172.9 million shares to 243.2 million shares (+40.7 per cent DoD). Traded value also increased by 103.1 per cent to reach US$ 59.7 million as against US$ 29.4 million.

Stocks that contributed significantly to the volumes include GGL, TPLP, WAVES, TELE and SERF.

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