Market watch: Stocks recover some lost ground, though volumes stay thin

Benchmark KSE-100 index gains 152.47 points to settle at 41,279.30

KARACHI: In line with its general trend of recovering some lost ground after decline for a day or a few days, the stock market ended in the green after Monday's fall.

Stocks opened positive and climbed to hit an intra-day high of 41,411.18 points, but lack of investors caused a slide of over 300 points later. Afterwards, the index, despite lower volumes, staged a remarkable recovery.

At close, the benchmark KSE 100-share Index recorded an increase of 152.47 points or 0.37% to end at 41,279.30.

According to Elixir Securities, Pakistan equities closed little higher after range bound trading amid lacklustre participation as just under 100 million shares changed hands on the benchmark KSE All-share Index.

"Cement and oil stocks closed mixed while financial shares were in the green with Habib Bank (HBL, +5%) leading the gains in the sector as it closed third consecutive session at the upper price limit after imposition of a lower penalty, with volumes near 2.7 million shares," stated Elixir.

MCB Bank (MCB, +2.4%) too stood strong and contributed to the gains while United Bank (UBL, -0.3%) closed on a flattish note, though the bank denounced recent false rumours of a possible penalty being imposed on the bank.



In a dull market, most activity was seen in small and mid-cap plays. "With no immediate positive triggers in sight and the earnings season nearing its end, we see consolidation at current levels and index oscillating in a range of 41,000 to 43,000 points in the near term," the report added.

JS Global analyst Maaz Mulla said volatility prevailed in the market as index remained range bound trading between -102 and +284 points and closed at 41,279 with an increase of 152 points.

The banking sector led the gains as HBL (+5%) closed at its upper circuit and National Bank (+2.02%) and MCB Bank (+2.43%) also closed positive. Fertiliser stocks recorded gains where Fauji Fertiliser Company (+0.18%), Fauji Fertiliser Bin Qasim (+0.93%) and Engro Fertiliser (+0.65%) ended the day in the green zone.



Cement companies contributed negatively to the index where Cherat Cement (-3.03%), Fauji Cement (-0.88%) and DG Khan Cement (-1.59%) were among major losers.

"The market is currently trading in a bearish zone, where we believe it lacks positive triggers. Short-term trading opportunities are available in our view, however, we recommend investors to stay cautious and grab selling opportunities," Mulla added.

Overall, trading volumes rose slightly to 99 million shares compared with Monday's tally of 94 million.

Shares of 371 companies were traded. At the end of the day, 155 stocks closed higher, 202 declined while 14 remained unchanged. The value of shares traded during the day was Rs5.4 billion.

Engro Polymer was the volume leader with 9.4 million shares, losing Rs1.28 to close at Rs27.34. It was followed by K-Electric with 9.2 million shares, gaining Rs0.11 to close at Rs6.25 and Jahangir Siddiqui and Company with 8.9 million shares, gaining Rs1.05 to close at Rs23.06.

Foreign institutional investors were net buyers of Rs401 million during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.