Stocks spiked on speculation that Prime Minister Shehbaz Sharif, who is currently in China on an official visit, would return with some financial support or guarantees from Beijing to support the country’s dwindling foreign exchange reserves.
In order to close at 41,808.69 points, the KSE-100 index increased 544.03 points, or 1.32%.
Despite the fact that the consumer price index inflation for October came in at 26.6%, which is higher than market expectations, Topline Securities said the day began on a good note at the Pakistan Stock Exchange (PSX). The PTI’s slow march toward Islamabad appears to have been taken in by the market.
The brokerage reported that Lucky Cement, Maple Leaf Cement Factory, DG Khan Cement Factory, and PIOC all closed higher. “Cements led initial gains, spurred by dropping worldwide coal prices,” the brokerage stated.
According to the brokerage, however, investors were seen moving into the technology sector in the second half, when TRG Pakistan and NetSol Technologies reached their price ceilings and Avanceon Limited and System Limited also closed higher.
About 65 points were also supplied by the oil and gas exploration industry.
190.53 million shares, up 95%, and Rs6.29 billion, up 1.5 times, respectively, were traded during the day. The company with the most shares, 22.93 million, was WorldCall Telecom.
In a report, Arif Habib Ltd (AHL) said that while the cement industry benefited from weak global coal markets, stocks rose in anticipation of the Prime Minister’s visit to China.
The AHL report stated that “the bulls made a comeback after consecutive dry sessions, reaching an intraday high of 568 points and giving investors much-needed confidence.”
It further stated that although mainboard volumes significantly increased, third-tier stocks remained to dominate the volume board.
Technology and communication (+131.2 points), cement (+83.7 points), electricity generation and distribution (+41.8 points), exploration and production (+64.7 points), and fertiliser (+42.6 points) were the primary sectors to boost the index.
