KARACHI: Amid optimism for a smooth passage of the budget for fiscal year 2024-25 and a subsequent deal with the International Monetary Fund, the stock market continued its recovery momentum on Thursday.

Investors engaged in value-hunting in oil and banking shares, which helped the benchmark index extend its overnight bull run.

Ahsan Mehanti of Arif Habib Corporation said the finance minister’s proposal to abolish 15 per cent additional tax on banking profits and the government’s approval of releasing Rs82 billion for Oil and Gas Development Company Ltd and Rs92bn in interest payments in 12 monthly instalments under the circular debt settlement plan drew investors’ interest in the two sectors at attractive valuations.

Topline Securities Ltd said fertiliser, banking, cement and E&P sectors contributed positively. Fauji Fertiliser, United Bank Ltd, Thal Ltd, OGDCL and Mari Petro­leum Ltd collectively added 214 points to the index.

As a result, the benchmark index hit an intraday high at 78,978.60 points and a low of 78,294.23. However, the index closed at 78,528.25 after adding 252.61 points or 0.32pc on a day-on-day basis.

However, the overall trading volume plunged by 39.64pc to 283.54 million shares. The traded value also contracted 44.03pc to Rs11.06bn on a day-on-day basis.

Stocks contributing significantly to the traded volume included WorldCall Telecom (21.97m shares), K-Electric (21.97m shares), Oil & Gas Development Company (16.92m shares), Pervez Ahmed Co (15.20m shares) and JS Bank Ltd (13.36m shares).

The shares registering the most significant increases in their share prices in absolute terms were Unilever Pakistan Food Ltd (Rs104.99), Rafhan Maize Products Company Ltd (Rs67.21), Mari Petroleum (Rs36.32), Thal Ltd (Rs34.92) and Pakistan Hotels Developers Ltd (Rs30.23).

The companies registering significant decreases in their share prices in absolute terms were Fateh Industries Ltd (Rs11.86), Dawood Lawrencepur Ltd (Rs7.39), S.S. Oil Mills Ltd (Rs7.35), Sazgar Engineering Works Ltd (Rs6.94) and Service Industries Ltd (Rs6.73).

Foreign investors turned net sellers as they offloaded shares worth $.007m.

Published in Dawn, June 28th, 2024