Pakistan equities continued to rally on Wednesday with KSE-100 Index rising by 155 points to 40,058 on optimism over expected incentives to be offered in budget particularly for the stock market.
The index opened higher and continued on an upward trajectory, making a high of +296 points, to finally close at 40,058 levels.
The State Bank of Pakistan (SBP) signed an agreement with Abu Dhabi Fund for Development (ADFD) for $3 billion to be deposited in the SBP account. Banking space witnessed heavy volumes in the day’s trading session where HBL (+2.2%), UBL (+1.2%), NBP (+0.5%) and MCB (+0.3%) cumulatively contributed +72 points to the index.
Investors interest was witnessed in the auto sector where HCAR (+5.0%), PSMC (+5.0%) closed at their respective upper circuit while INDU (+2.9%) closed in the green zone as investors await for the mini budget where relaxation could be given to non fillers.
An equity analyst at Trust Securities said the week so far showed positive picture where the benchmark index touched highs after Saudi Arabia and other countries support to help Pakistan became clearer, coupled with other factors. Indicators showed mixed picture after Federal Minister for Finance Asad Umar was going to unveil the mini-budget in the National Assembly.
PIAA closed gaining 17.86 percent DoD as Aviation Division Minister informed the Senate that process regarding the restructuring of Pakistan International Airline has been initiated with an aim to improve the standard of the national flag carrier.
Total volume was recorded at 179 million shares, up 31 percent from the last session. KEL (-0.2%), BOP (+0.9%) and TRG (+1.2%) led the volumes with more than 39 million shares changing hands.
“Possible incentives for stock market in mini budget as reported by media reports shall likely galvanize investors’ interest”, said Murtaza Jafar, an analyst at Elixir Research.