KARACHI: Snapping the five-session losing streak, bulls returned with a bang as hopes enlivened for a cut in the interest rate in the upcoming monetary policy review this month, tossing the benchmark KSE-100 index above the 64,000-point level on Thursday.

Topline Securities Ltd said investor optimism is fuelled by expectations of a positive outcome from the meeting with the International Monetary Fund (IMF) regarding the second loan tranche of $700 million.

Additionally, overnight T-bills indicated a market inclination towards an anticipated interest rate cut in the upcoming months, evident from substantial participation as investors sought higher yields. The total participation reached around Rs2.75tr before the expected rate drop.

As a result, Mari Petroleum Ltd, Pakistan Petroleum Ltd, Oil and Gas Development Ltd, Habib Bank Ltd and Hub Power Company Ltd collectively contributed 406 points to the index.

Ahsan Mehanti of Arif Habib Corporation said bullish activity was witnessed amid a slump in T-bill yields up to 59bps and upbeat economic data on home remittances surging by 13pc to $2.38bn in December.

“Surging exports, shrinking trade deficit and investor speculations ahead of major earning announcements due next week played a catalyst role in a bullish close at PSX.

The intraday high and low were recorded at 64,700 and 63,914 points. The KSE-100 index closed at 64,617.57 points after gaining 697.72 points or 1.09 per cent from the preceding session.

The overall trading volume, however, dipped by 7.79pc to 586.54 million shares. The traded value also fell 5.31pc to Rs17.02bn on a day-on-day basis.

Stocks contributing significantly to the traded volume included K-Electric Ltd (198.54m shares), Pakistan International Air­lines Corporation (33.89m shares), Pakistan Inter­national Bulk Ter­minal (27.38), World­call Telecom Ltd (25.88m shares) and Hascol Petroleum Ltd (22.42m shares).

Companies registering the biggest increases in their share prices in absolute terms were Mari Petroleum Ltd (Rs157.28), Pak Suzuki Motor Company Ltd (Rs62.69), Indus Motor Company Ltd (Rs57.05), Pakistan Services Ltd (Rs39.85) and Sapphire Textile Mills (Rs35.00).

Companies registering the biggest decreases in their share prices in absolute terms were Sapphire Fibres Ltd (Rs34.10), Pakistan Tobacco Comp­any Ltd (Rs23.60), JDW Sugar Mills Ltd (Rs18.92), Shield Corporation (Rs9.46) and Al-Ghazi Tractors Ltd (Rs8.70).

Foreign investors were net buyers as they bought shares worth $0.05m.

Published in Dawn, January 12th, 2024