KARACHI: The stock market maintained the uptick for the third consecutive session on Tuesday as investors expected positive news in the upcoming mini-budget.
The KSE-100 index gained mainly on the encouraging cues coming from anticipated financial support from Gulf countries. Buying activity continued throughout the trading session as Pakistan and the United Arab Emirates (UAE) were expected to sign an agreement for a $3-billion balance of payments support package for Islamabad, which was pledged by the Abu Dhabi ruler during his visit to Pakistan.
In addition to that, investors expected Prime Minister Imran Khan to receive $4 billion worth of credit facility for liquefied natural gas (LNG) imports during his ongoing two-day trip to Qatar.
Trading activity was noted across the board but the major stocks, which were in the limelight, were Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL), which got support from a favourable outlook on international crude oil prices. PSX likely to go up by over 1500 points after tax relief
At the end of trading, the benchmark KSE 100-share Index recorded an increase of 358.44 points, or 0.91%, to settle at 39,902.21.
Elixir Securities’ analyst Murtaza Jafar said equities extended gains with the benchmark KSE-100 index closing at 39,902.
He said the market continued to climb after a sideways opening, led by financial stocks including United Bank Limited (+1.84%), Habib Bank Limited (+2.59%) and MCB Bank (+1.13%).
Cement and refinery stocks followed suit in the wake of finance minister’s repeated assurances to industries that relief measures would be announced in the upcoming finance bill, due on Wednesday.
“On the results front, Pakistan Oilfields Limited (+0.36%) announced its 1HFY19 result, where the company posted earnings per share (EPS) of Rs27.79 along with cash dividend of Rs20 per share. Attock Petroleum (-4.66%) declared EPS of Rs21.13 along with cash payout of Rs10 per share for the same period,” he said.
POL’s result was slightly below estimates but Attock Petroleum’s earnings were a major disappointment as the company reported higher-than-expected inventory losses, Jafar pointed out.
“If the mini-budget is indeed investor-friendly, it should further help boost market sentiments,” he said.
However, “contrary to market talk, we expect increased taxation, particularly in the form of federal excise duty, sales tax and higher income tax on salaried individuals, which may spark profit-taking.”
Overall, trading volumes increased to 136.8 million shares compared with Monday’s tally of 124.5 million. The value of shares traded during the day was Rs6.8 billion.
Shares of 348 companies were traded. At the end of the day, 214 stocks closed higher, 109 declined and 25 remained unchanged.
TRG Pakistan was the volume leader with 11.56 million shares, gaining Rs1.20 to close at Rs25.93. It was followed by Fauji Foods with 9.89 million shares, gaining Rs1.45 to close at Rs35.08 and K-Electric with 9.59 million shares, gaining Rs0.06 to close at Rs6.63.
