Stocks on Wednesday barreled ahead for second day on reports that renegotiation of IMF program and release of private power producers’ dues were in the offing, dealers said.
Pakistan Stock Exchange’s (PSX) KSE-100 Shares Index gained 0.85 percent or 380.02 points to close at 44,943.61 points. Participation improved to 259.86 million shares from 221.50 million on Tuesday.
Amreen Soorani at JS Global Capital said the government had reportedly decided to soon pay Rs90 billion to IPPs that fall under 1994 Policy (and before) under the first payment while the reported Rs60 billion payment to IPPs under the 2002 Policy might take time.
Earlier it had been decided the dues would be cleared in two tranches, Soorani said.
She added that the first tranche would clear 40 percent of the outstanding dues through a 33.33 percent cash payment and the remaining 66.67 percent was to be settled through floating bonds and Sukuks.
The second tranche would clear the remaining 60 percent under a similar payment mode after six months, Soorani further said.
KSE-30 Shares Index also gained 0.67 percent or 122.64 points to close at 18,382.98 points.
As many as 370 scrips were active of which 227 advanced,
126 declined, and 17 ended unchanged.
Neelam Naz at JS Global Capital said bulls stayed in control as the KSE-100 Index touched a high of 45,173, points to eventually
closing at 44,943 mark, up 380 points.
“IPPs (Independent Power Producers) remained in limelight on expectations that payments to them would be made soon.”
In other important news, cement sales showed double-digit growth in April compared to the same period last year, Naz said.
However this news could not bring any major activity in the market in the cement sector, she added.
Brokerage Arif Habib Limited in a note said the market continued the uptrend led by power, banks, E&P, and oil and gas marketing companies.
However, technology stocks, Netsol and TRG Pakistan, dragged the index down, it added.
The brokerage said the index posted an overall gain of 610 points during the session and closed at 442 points.
News of partial release of funds by the government to settle IPPs’ outstanding dues helped Hub Power Company and Kot Addu Power Company to gain, the brokerage said in its report.
In the same vein, Pakistan State Oil (PSO) also performed with the prospect of receipt of funds from the IPPs, it said.
Ahsan Mehanti at Arif Habib Corp said stocks closed higher led by scrips across the board as investors speculated on likely renegotiation of IMF agreement on tariffs and corporate taxes to target 5.0 percent growth for FY22.
Strong financial results in oil, banking, and fertiliser sectors, upbeat oil sales, cement offtake, and surging global crude prices helped the index gain amid earnings season rally, Mehanti added.
Island Textile, up Rs149.99 to close at Rs2,199/share, and Sapphire Textile, up Rs63 to close at Rs918/share, were the top two gainers of the day.
On the other hand, AKD Capital, down Rs33.61 to close at Rs456.38/share, and Shield Corp, down Rs19 to end at Rs366.5/share, ended as the bottom two losers.
Unity Foods posted a turnover of 42.39 million shares to lead the volumes chart, followed by Telecard Limited with 32.75 million shares, and TRG Pakistan recording 30.08 million shares.