Four new Pakistani firms added to MSCI FM100
Business Desk
KARACHI: Stocks rose Tuesday after investors somewhat cheered the narrowing of the current account (CA) gap in a tightly-guarded trade as political instability continues to remain a cause of concern, traders said.
Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index ticked up by 167.43 points to settle at 42,928.62 after hitting an intraday high of 315.26 points at 43,076.45 points.
Darson Research in a post-market note said the local equity market finished on a positive note after the country’s current account deficit fell sharply by 47% during the first four months of this fiscal year (FY23).
“This alone was the major factor behind the buoyancy of the bourse,” the brokerage said. Pakistan’s current account deficit yawned $204 million or 56% to $567 million for October 2022 as compared to September’s $363 million, month-on-month, while it shrank 68% year-on-year (YoY), courtesy of the central bank-led curbs that have successfully put brakes on imports.
According to data released by the State Bank of Pakistan (SBP) on Monday, during the first four months of this fiscal year (4MFY23), the current account deficit contracted by 47% year-on-year to $2.821 billion as compared to $5.305 billion during the same period of the previous fiscal. Analysts attributed the monthly decline in deficit to a slump in workers’ remittances by 9% month-on-month ($221 million) to $2.216 million. Topline Research said in MSCI Semi-Annual Review for its Frontier Market FM100 Index, the global benchmark indices provider added four companies (Pakistan Oil Fields, TRG Pakistan, System Limited, and Lucky Cement).
“This development added to the buying momentum which kept blue chip stocks in the limelight through the day,” the brokerage said.
During the day, technology, fertiliser, and auto sector stocks contributed positively to the index. Resultantly, System Limited, Engro Corporation, Indus Motor, Dawood Hercules Corporation Limited, and Pak Elektron Ltd added 152 points to the index. On the flip side, TRG Pakistan, Pakistan Petroleum Limited, and Oil and Gas Development Company, witnessed some profit-taking as they lost 30 points collectively. Around 194 million shares were traded today, while the total trade value clocked in at Rs6.8 billion. WorldCall Telecom Limited led the volumes chart with a trade of 18.5 million shares.
