Stocks gain on upbeat economic data

Shares gained more than one percent on Friday as a swath of positive data, easing pressure on the country’s otherwise bleak economic outlook, boosted economically sensitive sectors, dealers said.

Stronger-than-expected remittances, double-digit growth in large-scale manufacturing, and reports of additional AfDB funding for fiscal support lifted investor sentiment.

Securing a gain of 588.02 points or 1.37%, the benchmark KSE-100 shares closed at 43,486.46 points after hitting a daily high of 43,505.75 and a low of 42,853, 50 points on the Pakistan Stock Exchange.

Arif Habib Corp’s Ahsan Mehanti said it closed sharply higher, led by scrips across the board on a bull run in Asian stocks and reports of $3.1 billion in record take-home payouts in April.

Reports on AfDB’s likely approval of an additional support loan of up to $2 billion by December 2022, with World Bank report predicting 8% growth in remittances for FY2023 and soaring global crude oil prices boosted sentiment, he said.

Muhammad Waqar Iqbal of JS Research said that after a week of range-bound sessions, the bulls have made a comeback.

“We believe that a decision on oil prices, progress on the IMF program and stability of the rupee will be the main triggers for the index going forward,” Iqbal said.

The KSE-30 index also closed up 234.15 points or 1.44% at 16,541.97 points from 16,307.82 points recorded in the last session.

Volumes fell 76 million shares to 208.112 million from 284.503 million shares. The trade value fell to 6.972 billion rupees from 7.800 billion rupees. Turnover in futures fell to 70.135 million shares from 75.443 million. The market capital increased from 7,106 billion rupees to 7,199 trillion rupees.

Nabeel Haroon, a stock broker at Topline Securities, said the index was trading sideways in a lackluster trade; however, investor interest was seen in the second half of the trading session on the back of April 2022’s record payout count.

Nestle Pakistan was the top earner on the day rising from Rs 173.16 to Rs 5,789 per share, followed by Sapphire Fiber which rose from Rs 61.99 to Rs 912 per share. Ismail Industries, the worst performer of the day, fell from Rs31.70 to Rs426.05/share, followed by Siemens Pakistan which fell from Rs18 to Rs600 per share.

Brokerage Arif Habib Ltd said in a note that shares opened in the positive zone, continuing the momentum of the last trading session.

The benchmark managed to stay in the green throughout the day after data showed foreign remittances in April 2022 jumped 12% year-on-year, the highest ever recorded, giving investors much-needed confidence, which translates into value buys across the board, the brokerage said. .

The analyst report further indicates that although motherboard activity remained lackluster, strong volumes were seen in third-tier stocks.

The sectors that contributed to the performance are banks (+136.1 points), energy (+127 points), cement (+46.7 points) and automotive (+46.6 points), a indicated the brokerage.

Treet Corp was the volume leader with 20.904 million. The stock rose 29 paisa to Rs31.74 per share. It was followed by Cnergyico PK with 20.897 million shares. Oil sector stock rose 8 paisa to 5.49 rupees per share.

Other stocks that saw strong revenue included Pak Refinery, Lotte Chemical, WorldCall Telecom, Unity Foods Ltd, Hum Network XD, G3 Technologies, Ghani Global Holding and TPL Properties.

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