European Union’s duty exemption on unfinished goods showed its positive impact, as the KSE-100 index gained 68 points on Friday.
However, instability in the economic and political situation and the International Monetary Fund’s claim that the release of $ 1.7 billion would be followed by implementation of various stringent inflationary measures kept the nerves alive.
The tranche is expected to be released in December, while the country already holds nine billion dollars for reserve support out a total reserve of $13.5 billion held by the State Bank.
Similarly, repercussion of the ballooning circular debt and likely increase in inflationary pressure is affecting the local interest rate scenario. This would make life more difficult for manufacturers, due to the likely rise in the electric and gas tariff structure.
The KSE-100 index gained 68 points and closed at 10260.48 points, while the share index witnessed a gain of 44 points to close at 7186.99. The KSE-30 index saw an increase of 65 points and closed at 9929.57 points.
Total volume of shares traded were 61, 367, while a total of 211 scrips advanced, 149 declined and the remaining 24 stayed unchanged. The ready market volume closed at 134.661 million and the future market volume stayed at 2.433 million shares.
Lotte Pakistan PTA, Nishat (Chunian), Worldcall Telecom, Nishat Mills ltd, and Bank Alfalah were the chief gainers of the day.
Lotte Pakistan PTA took lead in terms of volume to stand at 18.301 million, and gained Rs 0.18 to close at Rs 8.91. They were followed by Worldcall Telecom who had a volume of 8.87 million to close at Rs. 2.60, while Nishat Mills Ltd with a gain of Rs 0.92 ended at Rs. 49.50, with their volume standing at 7.45 million.
Renewed activity was seen in almost all stocks that took lead. However trading activities were affected by the news that OGDC, which is known for holding the highest number of liquid reserves, is left with six billion rupees and that they will start borrowing from next year.
In addition, news that PPL indents will raise debt through dollar bonds for exploration activity and non-performing loans are expected to stay on the rise in the prevailing high interest rate scenario also had a negative impact.
“The timely introduction of non-amended MTS will undoubtedly allow the local bourse an elevation in values, while the stake holders await positive signals from economic front” said Hasnain Asghar Ali, a market expert.
