Karachi (TDI): Bulls continued to dominate the trade floor for a third consecutive day as the benchmark KSE-100 index on Wednesday climbed 502.18 points, or 0.59 per cent, to stand at 86,166.15 points from the previous close of 85,663.97 points at 12:44pm, the daily Dawn reported.
Citing director research at AKD Securities, the report said that investors were optimistic about an improving investment climate, and expected positive outcomes from the upcoming visit of the Saudi delegation.
The report added that concerns about external account pressures stemming from oil price volatility have been alleviated by higher remittance figures for September and, according to the AKD Securities’ official, stabilise the external account.
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Despite today’s trading session, Pakistan equities are still cheaper on valuations as market is currently trading at PE [price-to-earning] ratio of 3.7 and providing dividend yield of 12.7pc, the report explored.
The report further said that, last week, the government had rejected all bids for three-month treasury bills but raised money close to the target and much below the maturity amount at the auction.
A long gap and the rejection of all bills at the Sept 18 auction had also caused yields to fall substantially, dawn reported.
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Yesterday, stocks had also rallied on news of a high-level Saudi delegation, led by Minister for Investment Khalid Bin Abdulaziz Al-Falih, set to visit Pakistan from Oct 9 (today) to October 11 to boost economic ties between the two countries.
The report analyses that the optimism had been reflected in the increasing share prices of several companies including Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), Pakistan State Oil (PSO) and Pakistan Refinery Limited (PRL).
Pakistani top officials have confirmed that the country is going to sign agreements worth $2 billion with the visiting Saudi delegation.
