Stocks feed on gas sector gains amid strong economic data

The gas sector sparked a capital market rally on Friday, cheering new legislation to reduce circular debt, amid upbeat FDI and industrial production figures, dealers said.

The benchmark Pakistan Stock Exchange (PSX) KSE-100 Shares Index closed at 45,675 points at the end of Friday’s session against 45,441 points, gaining almost 235 points or 0.52%.

A positive session was seen in the last trading session of the week, which could be attributed to the passage of the Weighted Average Cost of Gas (WACOG) bill in the Senate on Thursday, Topline Securities commented in a report. post-trade note.

The brokerage said passage of the legislation would lead to a decrease in the circular accumulation of debt. As a result, OGDC, PPL and SNGPL added 60 points to the index, the brokerage said, adding that EFERT and UBL also contributed 51 points.

However, the WACOG legislation was not the only positive trigger, as other factors, namely increased foreign direct investment (FDI), stability of the rupiah and strong financial results, also contributed to the exit. the blues market.

According to Darson Research, the market rebounded as the large-scale manufacturing (LSM) sector grew faster than expected in December and FDI grew by 11% in the first seven months of this month. fiscal year (fiscal year 2022).

Earlier trading started positively and the market continued to rise throughout the day, the brokerage said.

Additionally, trading activity in the KSE-All Share Index also increased from the last trading session, Darson Research said, adding that Bank of Punjab was the biggest contributor to volume, followed by SNBL.

Analysts said growth in the LSM sector was mainly supported by strong auto and textile production, but added that high price inflation could weigh on factory output in the coming months.

Shares closed higher as investors weighed upbeat foreign investment data, said Ahsan Mehanti of Arif Habib Corp, and added that strong financial results and a firm rupee also gave investors a boost. sentimental.

JS Research in its Market Analysis said stocks got off to a lackluster start with trading volume in the all-stock index reaching 70 million shares in the first half. Volumes came in at 194 million shares versus 153 million traded the previous session.

Bank of Punjab (BOP) released its annual result, which generated a decent share volume.

“We expect the market to remain constrained due to futures rolling next week,” he said.

Arif Habib Limited in its report stated that the market saw positive momentum as well as improved trading volumes today due to lower crude oil prices.

The approval of two new bills, relating to the gas sector, by the Senate, led SNGP, SSGC, OGDC, PPL and PSO to close in the green zone.

In banking, Bank of Punjab remained in the limelight reporting 12.5% ​​free shares and EPS (earnings per share) beating market expectations, the brokerage said.

At the closing bell, 179 companies were in the green, 131 in the red, while 23 remained unchanged.

Total turnover reached 194 million shares from 152 million shares in the previous session, while the value traded stood at 4.3 billion from 4.7 billion in the previous session.

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