PSX concentrations for interest rate reducing expectations

Karachi:

The Pakistan Stock Exchange (PSX) closed on Friday in a note, increasing nearly 700 points, as investors predicted the reduction of the Pakistanic Bank Policy Bank (SBP) next week after reading the inflation of 1.5% in February 20.

A powerful rupee, ongoing government debates on the privatization of state -owned enterprises (SOES) and efforts to resolve the problem of circular debt before the liberalization of the loan loan of the International Monetary Fund (IMF) loan (IMF) next month.
The KSE-100 reference index was installed on 114,399, led by the rally in oil and cement reserves.

Analysts have attributed profits to government plans to borrow RS1.25 trillion from banks to less than 11% interest to deal with circular energy debt, as well as reducing global carbon prices that benefited cement companies.

“Stocks were closed higher as investors saw the reduction of the SBP policy interest rate next week after a CPI-Low inflation to 1.5% in February,” Arif Habib Corporation said. A powerful rupee, governmental debates on privatizing the CEOs and expectations to resolve the circular debt of the electricity sector, before the release of the IMF Tranche, played the role of catalysts at the Bullish Close on PSX, he said.

At the end of the negotiation, the KSE-100 reference index published an increase of 685.52 points or 0.60%and settled in 114,398.70.
Arif Habib Limited (AHL) said that on Friday 61 shares went on and 33 decreased. The top ratio profits were PSO (+7.7%), Fauji cement (+9.45%) and Pakistan’s oil (+1.43%) while the largest drags were Fauji Fertilizer Company (-0.52%), Engro Holdings (-2.33%) and Limited Limited (-0.82%).

Overall, it was a steady week for the KSE-100, which won 1% week in a week. “Looking forward, the index is expected to see strong profits, possibly exceeding 116,000 next week,” Ahl said.

Topline Securities wrote in its revision that the market continued the momentum of the previous day, as the KSE-100 index won 0.6%. Petroleum and cement companies drove the rally.

Petroleum companies stood in news that the government had reached an agreement with commercial banks to borrow RS1.25 trillion in less than 11% interest to resolve circular debt companies and cement, it garnered investment interests from the recent decline.

The top positive contribution to the index came from PSO, Fauji cement, hub power, Pakistan oil, pioneer cement, lucky cement and Cherat cement as they contributed 513 points, Topline added.

JS Muhammad Hasan Ather’s world analyst said the KSE-100 index increased by 685 points, which was attributed to government plans for a significant 1.25 trillion RS at a interest rate of below 11%, with the aim of resolving circular debt.

In addition, the prediction of further monetary relaxation and reduction of global oil prices positively affected inflation expectations, enhancing circular reserves. Looking forward, a smooth revision of the IMF program could promote the market from the unification phase, paving the way for further growth and stability.

The total volumes of transactions were recorded in 404.4 million shares compared to 373.1 million from the previous session. The value of the shares traded during the day was 27.8 billion Rs.

The shares of 433 companies were negotiated. Of these, 219 stocks were closed higher, 151 fell and 63 remained unchanged.

The Fauji Cement was the volume leader with a negotiation of 57.2 million shares, winning RS3.97 to close at RS45.99. Sui Southern Gas Company followed with 23.8 million shares, winning RS1.52 to close in RS35.50 and Maple Leaf Cement with 22.5 million shares, winning RS2.12 to close the RS56.63. During the day, foreign investors sold RS772.5 million shares, according to NCCPL.