KSE-100 gains 870 points as investor sentiment soothed on IMF front

Stocks staged a strong comeback as trading resumed at the bourse after a holiday, as the benchmark KSE-100 Index settled above the 45,000 level amid positive news flow on the International Monetary Fund (IMF) front on Wednesday.

The index opened positive and continued its momentum throughout the day, accumulating 934.16 points. The benchmark index recorded an intra-day high of 45,563.61.

At close on Wednesday, the KSE-100 Index finished with a gain of 870.01 points or 1.95% to settle at 45,499.46. Volume and value of shares traded remained on the higher side.

Sana Tawfik, analyst at Arif Habib Limited (AHL), told PEN that the rally can be attributed to multiple factors.

“It is primarily due to clarity regarding the appointment of DG ISI, news from IMF negotiations, and latest figures current account deficit figures, which has come down 24% on a monthly basis,” said Tawfik.

She added that imports also have come down on a monthly basis, albeit marginally, while exports have increased “which is a healthy sign,” easing concerns on the external accounts.

Tawfik added that the momentum is expected to continue as the latest corporate results have remained in line with market expectation, though concerns on rupee depreciation remain.

Pakistan reported a current account deficit of $1.113 billion in September, down from $1.473 billion in August, said the State Bank of Pakistan (SBP) on Tuesday.

The current account balance stood at a surplus of $30 million in September 2020. However, on a monthly basis, the deficit has narrowed around 24%, as an improvement in the balance on trade helped the situation.

On the corporate front, UBL announced its earnings for 9MCY21 at Rs21.7bn alongside an EPS of Rs 17.76, depicting an uptick of 39% YoY while down 9% QoQ.

On Wednesday, sectors driving the benchmark KSE-100 index upwards included banking (172.61 points), cement (164.95 points), and technology and communication (108.41 points).

Volume on the all-share index increased from 248.29 million on Monday to 308.19 million on Wednesday. The value of shares traded also increased, amounting to Rs10.38 billion from Rs8.82 billion on Monday.

WorldCall Telecom was the volume leader with 49.45 million shares, followed by Hum Network with 24.77 million shares, and Byco Petroleum with 15.61 million shares.

Shares of 361 companies were traded on Wednesday, of which 274 registered an increase, 79 recorded a fall, while 8 remained unchanged.