Market watch: PSX gets relief after bearish session

Benchmark index increases 114.23 points to settle at 33,198.96

KARACHI: The Pakistan Stock Exchange (PSX) got some respite on Tuesday following the bearish trade a day ago as recovering global equities and crude oil prices helped the benchmark KSE-100 index recover.

Despite a plunge in the early hours of trading, the index remained range bound as trading volumes stood low. Sentiments were weak on account of growing political noise in the country and an overall lack of positive triggers.

At close, the benchmark KSE 100-share Index recorded an increase of 114.23 points, or 0.35%, to settle at 33,198.96.

JS Global analyst Danish Ladhani said equities saw a volatile session with the KSE-100 index gaining 114 points and closing at 33,199.

"We expect the market to remain under pressure in the short run due to ongoing developments regarding the Azadi March planned by the opposition parties and tensions along the Pakistan-India border," he said.

In the exploration and production sector, Mari Petroleum (+1.4%) announced 9MCY19 earnings per share of Rs1.51 vs Rs1.45 in the same period of previous year with no cash dividend.

Mixed sentiment was seen in the financial sector where big banks HBL (+1.1%), MCB Bank (+1%) and UBL (+0.4%) were in the positive zone.

Mixed sentiment was also witnessed in the fertiliser sector as Engro (-0.5%) was the laggard whereas Fauji Fertiliser Company (+0.3%) remained in the positive territory. "Moving ahead, we expect the market to remain choppy due to developments on the political front."

Meanwhile, Aba Ali Habib Securities, in its report, stated that stock trading remained range bound for most part of the day. "The bourse recorded trading in merely 83 million shares in the broader market, which was the lowest volume for the current month. Investor sentiment remained weak due to a lack of positive triggers and ongoing political noise," it said.

Major stocks responsible for pushing the market higher were HBL (+Rs1.39), Hubco (+Rs0.82), MCB Bank (+Rs1.69), Nestle (+Rs300) and Dawood Hercules (+Rs1.86), cumulatively adding 83 points to the benchmark index.

Sector-wise, the chemical sector outshined as the most traded sector on the back of improvement in chemical margins.

Among major stocks of the sector, Archroma Pakistan gained Rs7 in its share value followed by Dynea Pakistan (+Rs3.08), Akzo Nobel (+Rs2.40), Engro Polymer and Chemicals (+Rs0.50) and Lotte Chemical (+Rs0.33), the report added.

Overall, trading volumes decreased to 83.6 million shares compared with Monday's tally of 130.3 million. The value of shares traded during the day was Rs3.19 billion.

Shares of 344 companies were traded. At the end of the day, 188 stocks closed higher, 135 declined and 21 remained unchanged.

Lotte Chemical was the volume leader with 10.8 million shares, gaining Rs0.33 to close at Rs16.26. It was followed by TRG Pakistan with 4.1 million shares, gaining Rs0.06 to close at Rs15.18 and Fauji Fertiliser Bin Qasim with 3.4 million shares, losing Rs0.83 to close at Rs16.18.

Foreign institutional investors were net buyers of Rs289 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.