The stock market remained bullish on Friday on the back of upbeat data on the current account deficit for FY19 and a surge in foreign exchange reserves, which went up after the receipt of first loan tranche from the International Monetary Fund (IMF).
The uptrend emerged late in the trading session. Foreign inflows, government’s approval of an increase in local fertiliser prices and hopes for improved Pakistan-US trade ties in the wake of Prime Minister Imran Khan’s visit to Washington next week played the role of catalysts in bullish close of the market.
Overall, trading volumes increased to 121.6 million shares compared with Thursday’s tally of 87.4 million. The value of shares traded during the day was Rs4.4 billion. Shares of 316 companies were traded. At the end of the day, 155 stocks closed higher, 129 declined and 32 remained unchanged.
Maple Leaf Cement was the volume leader with 14.4 million shares, losing Rs0.24 to close at Rs19.78. It was followed by TRG Pakistan with 12.2 million shares, gaining Rs0.33 to close at Rs13 and K-Electric with 11.1 million shares, gaining Rs0.1 to close at Rs3.64.
Foreign institutional investors were net buyers of Rs363.1 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan. At the end of trading, the benchmark KSE 100-share Index recorded an increase of 149.23 points, or 0.46%, to settle at 32,458.77.
According to the latest data released by State Bank of Pakistan, foreign exchange reserves held by the central bank increased by 12.9pc on a weekly basis to stand at $8 billion. The increase was recorded after Pakistan received the first tranche of $991.4 million from the International Monetary Fund (IMF).
Breaking its 52-week range, the KSE-100 Index touched its intraday low of 31,901.28 after losing 408.26 points. The index then managed to gain 239.77 points to touch its intraday high of 32,549.31. It finally closed higher by 149.23 points at 32,458.77. The KMI-30 Index gathered 600.81 points to end at 51,004.52, while the KSE All Share Index ended positive at 23,815.76 after accumulating 48.75 points.
As per media reports, Adviser to Prime Minister on Commerce Abdul Razaq Dawood on Thursday announced that the government has increased the price of fertilizer by Rs10 per bag. He further added that the government will provide Rs1 billion subsidy on import of fertilizers to facilitate farmers and promote the agricultural sector.
Following the news, the fertilizer sector gained 0.79pc in its cumulative market capitalization. Fauji Fertilizer Company Limited (FFC +1.67pc) closed with decent gains, while Fatima Fertilizer Company Limited (FATIMA -2.81pc) ended in the red.
The oil and gas marketing sector added +2.52pc in its total market capitalization. Sui Northern Gas Pipeline Limited (SNGP +4.41pc), Pakistan State Oil Company Limited (PSO +4.12pc) and Sui Southern Gas Company Limited (SSGC +3.15pc) all closed with decent gains.
According to a notification sent to the exchange, Hascol Petroleum Limited (HASCOL +3.10pc) and Vitol Dubai Limited (VDL) have entered into financial arrangements whereby VDL has agreed to provide facilities of $42 million.