KARACHI: The stock market rebounded on Wednesday following an overnight loss, thanks to political clarity and solid company results, as investors chose to selectively buy at favorable prices.
Topline Securities Ltd reported that the continued clarity surrounding the creation of a new central government contributed to the equities’ near-constant bullishness throughout the session.
Following highly controversial elections, Moody’s Investors Service maintained Pakistan’s ratings unchanged at “Caa3” with a stable outlook, but highlighted the significant risks of liquidity and external vulnerability challenges that severely limited the coalition government-in-waiting’s ability to make decisions. This resulted in an overall buying momentum in the market.
As a result, the industries of fertilizer, cement, banking, and exploration and production made positive contributions to the index, adding a total of 314 points amongst Fauji Fertilizer Company, Engro Fertilizers Ltd., Lucky Cement, MCB Bank, and Oil and Gas Development Company.
Thus, the KSE-100 index gained 484.35 points, or 0.77 percent, over the previous session and closed at 63,703.45 points.
The total number of shares traded increased by 12.54 percent to 461.39 million. On a daily basis, the transacted value also rose by 9.03 percent to Rs16 billion.
A substantial portion of the traded volume was made up of the following stocks: Pakistan Refinery Ltd (20.72m shares), WorldCall Telecom Ltd (21.67m shares), K-Electric (45.39m shares), Kohinoor Spinning Mills Ltd (23.30m shares), Cnergyico PK Ltd (62.18m shares), and Hascol Petroleum Ltd (30.48m shares).
The shares of Unilever Foods Company Ltd (Rs655.00), The Premier Sugar (Rs33.75), Lucky Cement Ltd (Rs24.53), Dawood Larencepur (Rs17.78), and Thal Ltd (Rs15.24) had the largest rises in value.
The companies that saw the largest declines in share prices in absolute terms were Siemens Pakistan Ltd (Rs6.95), Ferozesons Laboratories (Rs8.70), Hoechst Pakistan (Rs21.00), Pakistan Services Ltd (Rs50.00), and Bata Pakistan (Rs25.40).
Foreign investors continued to be net purchasers, purchasing shares valued at $2.95 million.
