IMF letter of intent pushes stocks up nearly 1.5%
Stocks made a massive comeback on Friday as the arrival of the IMF’s Letter of Intent (LoI) raised hopes that $1.17 billion inflows under the new bailout facility were imminent, while the rupee’s winning streak against the dollar also helped, traders said.
The benchmark Pakistan Stock Exchange (PSX) KSE-100 Shares Index gained 614.24 points or 1.45% to close at 42,857.57 after swinging between a high of 42,873.57 and a low of 42,243.33 points during the intraday trade.
Analysts at Arif Habib Ltd, a brokerage firm, said the market opened in the positive zone although investor participation remained lackluster throughout the opening session.
The bulls made a comeback in the second session for value hunting across the board after Pakistan received the IMF’s Letter of Intent for the Extended Funding Facility, the brokerage reported.
Motherboard volumes remained healthy, although strong volumes were seen in third tier inventory.
The KSE-30 index also jumped 243.97 points or 1.53% to 16,215.64 points from 15,971.67 points recorded in the last session.
Ahsan Mehanti, an analyst at Arif Habib Corp, said the shares closed sharply higher after reports that the government had received the IMF’s letter of intent for the revival of the IMF loan facility and the recovery of the debt. local currency.
However, mid-term pressure remained due to the erosion of foreign exchange reserves, the lifting of 15 billion rupees in new taxes for the IMF loan and the fall in world crude oil prices, a- he declared.
Shares traded increased by 92 million to 373.855 million from 281.734 million shares. The trade value increased from 7.795 billion rupees to 10.613 billion rupees.
The market capital increased from 7,083 billion rupees to 7,173 billion rupees. Of 357 companies active in the session, 261 closed in green, 81 in red, while 15 remained unchanged.
Topline Securities attributed Friday’s bull run to the major development on the IMF lending front, meaning the suspended lending program would soon resume with additional funding, the brokerage said.
A major contribution to the index came from HBL, OGDC, MTL, MEBL, POL and PPL, as they added 288 index points.
The largest increase was recorded in shares of Sapphire Fiber, which rose by Rs 74.80 to Rs 1,127.80 per share, followed by Sapphire Textile, which rose by Rs 74.16 to Rs 1,062.94 per share.
A significant drop was noted in shares of Nestle Pakistan XD, which fell by Rs 200 to Rs 5,900 per share, followed by Gatron Industries, which fell by Rs 21.09 to Rs 340.01 per share.
The sectors contributing to performance are banks (+149.3 points), E&P (+115.2 points), automobile assemblers (+46.3 points), fertilizers (+40.3 points) and WTO (+37.5 points).
Cnergyico PK was the volume leader with 49.760 million shares. The refiner earned 30 paisas to close at Rs5.69 per share.
The second most traded stock was WorldCall Telecom after posting revenue of 28.358 million shares. Telecoms closed up 4 paisa at Rs1.34 per share.
Other stocks which recorded strong turnover included Pakistan Refinery, Hascol Petrol, Lotte Chemical, K-Electric Ltd., TPL Properties, Telecard Limited, Pace (Pak) Ltd and Waves Singer.
Futures revenue increased from 79.339 million shares to 107.414 million shares.