CHI - IMFs approval of $1.2 billion fourth tranche led a broad rally in the market as the benchmark KSE-100 index closed 119 points up, at 9,422 level.
The volume increased by 25 per cent to stand at 146 million shares with OGDC, DGKC and NML all featuring in the volume leaders lot. The E&P sector witnessed an OGDC and POL led rally amid rising international oil prices, as they closed 3.1 per cent and 1.6pc up, respectively.
DGKC and LUCK increased for a third straight day, on the news that the cement sector is expected to receive a 50 per cent subsidy on inland freight as promised in the Trade Policy. In contrast, news regarding the replacement of the deemed duty with a fixed service charge led to a 1.3 per cent decline in ATRL.
The KSE 100 Index opened in green zone with a gain of 30.49 points and at the end of the day closed at 9422.23 with a gain of 119.31 points, and KSE 30 index closed at 9903.13 with a gain of 120.77 points, while all shares index closed at 6685.67 with a gain of 81.18 points.
Trading activity was better as compared to the last trading session as the Ready market volume stands at 146.076mn as compared to last trading session 116.947mn.
Market Capitalization stands over Rs. 2.714tr. Total trades increases to 90,818 as compared to last trading session 79,796, while 215 companies advanced, 169 declined and 20 remained unchanged.
Highest volumes were witnessed in NCL at 15.362mn closed at Rs. 20.31 with a gain of Rs. 0.78 followed by OGDC at 9.122mn closed at Rs. 111.20 with a gain of Rs. 3.17, FFBL at 9.061mn closed at Rs. 26.13 with a gain of Rs 0.75.
Ahsan Mehanti, a market analyst, said the expectation of strong result announcements next month, increase in international oil prices and renewed foreign interest played a catalyst role in positive activity at KSE.
The news that affected the securities listed on KSE were approval of $1.2b loan; Mutual Funds hit Rs232bn MoM; Oil refineries to face annual loss of Rs 1-3b; Banks 1Q CAR races to 14.3pc; and 13.5 percent rise in power tariff rejected.
He said that foreign investors repatriate $200 million, EPZ exports dip by 10 percent in July-November, supplementary grants to be presented to National Assembly; and economic development of country; effective role of entrepreneurs highlighted also affected the trading activities at the market. A market expert Salman Vidhani said that it is believed that buoyancy at bourse is likely to continue as liquidity in the system improves owing to NFA growth. Moreover, NML has announced plans to acquire shares of up to $60m in AES Lalpir (Pvt.) Limited and AES Pak Gen (Pvt.) Ltd, as part of its diversification strategy in the power sector, so NMLs share in the acquisition is likely to stand in the vicinity of 35pc, translating into an acquisition cost of $45m (Rs3.8b).