Shares gain 522 points as KSE-100 settles below 46,000 mark

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index gained more than 500 points on Friday to close slightly below the 46,000 mark.

The index had gained 675.30 points to reach 46,073.61 points at 3:46pm, from yesterday’s close of 45,398.31. However, it closed 522.42 points, or 1.15 per cent, up at 45,920.73.

Arif Habib Corporation Director Ahsan Mehanti said that foreign capital was buying shares in the energy sector.

He attributed the rally in the stock market to “good financial results”, the Islamabad High Court’s (IHC) ruling which declared the imposition of super tax on various companies against the law and reports of the policy rate remaining the same.

Due to all these factors, the index has crossed the 46,000 mark after a gap of 15 months, he said.

Salman Naqvi, head of research at Aba Ali Habib Securities, said that that the stock market had broken the 46,000 level after several months. Naqvi also attributed the rally to the IHC verdict on super tax.

“So there has been an improvement in all sectors,” he said. He further said that “potential” had been created after standby agreement with the International Monetary Fund (IMF) was announced.

“If the market closes above 46,000, then it could go up further,” he said.

First National Equities Limited Director Amir Shehzad said that market had witnessed a “technical correction”. He said that market could cross the 47,000 point barrier next week.

He said that if the central bank kept the monetary policy unchanged, then it would have a positive effect on the market which may lead to a new record.