Backed by an extraordinary gain in value of the rupee, the Pakistan Stock Exchange (PSX) maintained its bullish run as the benchmark KSE-100 Index crossed the 49,000 level with an over 700-point increase on Friday.
At close, the benchmark index settled at 49,493.47, up by 721.76 points or 1.48% with a gradual increase throughout the day. Sentiment was also boosted by remarks made by the central bank governor with regards to the International Monetary Fund (IMF) programme.
Bulls have been dominant at the PSX, helping the benchmark index gain on Thursday as well when it closed at 48,771.71 after an increase of 297.17 points or 0.61%.
It was the highest closing level for the KSE-100 in six years. Back on June 9, 2017, the index had finished at 49,527 points.
Across-the-board buying was witnessed during trading on Friday as well, with index-heavy sectors including automobile assemblers, cement, chemical, commercial banks, oil and gas exploration companies, OMCs, pharmaceuticals and refinery sector in the green.
The increase has come on the back of several factors including an appreciating rupee, positive corporate results, and the SBP chief’s remarks during the day.
“The ongoing appreciation of the rupee is a key factor driving equities,” Sana Tawfik, economic analyst at Arif Habib Limited (AHL), told Business Recorder.
“Moreover, corporate results are due, and the market expects good earnings, especially from the banking sector. Going forward, more positive results are expected,” she said.
The analyst said Pak Suzuki Motor Company’s (PSMC) decision to consider delisting is a positive for minority shareholders.
PSMC in a notice on Wednesday said it would review and consider the majority shareholder’s intent to purchase all outstanding shares of the company and delist from the PSX. It hit its upper price-limit for a second successive session on Friday.
Meanwhile, the Pakistani rupee continued its winning run against the US dollar as it gained another 0.35% in the inter-bank market on Friday. As per the State Bank of Pakistan, the local unit settled at 277.62 after an increase of Re0.96 in the inter-bank market.
This was the rupee’s 27th consecutive appreciation against the greenback.
Volume on the all-share index increased to 556.39 million from 342.3 million on Friday. The value of shares traded also rose to Rs15.45 billion from Rs11.73 billion in the previous session.
K-Electric Ltd. remained the volume leader with 134.8 million shares, followed by P.T.C.L. with 48.4 million shares and WorldCall Telecom with 33.5 million shares.
Shares of 362 companies were traded on Friday, of which 240 registered an increase, 101 recorded a fall, and 21 remained unchanged.
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