Market watch: PSX ends week with gain of 231 points

Benchmark index rises 0.68% to settle at 34,350.42

KARACHI: Pakistan Stock Exchange (PSX) ended the week on a high note, with the benchmark KSE-100 index gaining over 200 points.

Earlier, the market had remained bearish in the past two sessions, but a pre-budget rally and the Annual Plan Coordination Committee’s proposal for development spending of Rs1.3 trillion in the next fiscal year appeared to have built investor confidence to return to the market.

The unemployment reading of 8.53% in the current government’s second year, released on Thursday, failed to have any significant impact on investor sentiment. Moreover, surging global crude oil prices coupled with Pakistan government’s decision to further ease the lockdown strengthened investors’ confidence.

At close, the benchmark KSE-100 index recorded an increase of 231.03 points, or 0.68%, to settle at 34,350.42.

Arif Habib Limited, in its report, stated that the stock market remained range bound for most part of the day but saw rising volumes and index by the end that led to an overall increase of 248 points.

“Cement, fertiliser and pharma stocks showed signs of recovery,” it said. Some of the stocks in the pharma sector hit their respective upper circuit like AGP Limited and Ferozsons Laboratories.

Meanwhile, banking sector stocks came under selling pressure amid low trading volumes.

The cement sector led the volumes with trading in 16.1 million shares, followed by technology firms (10.8 million) and investment banks (7.5 million).

Among individual stocks, Maple Leaf Cement topped the chart with 6.6 million shares changing hands, followed by Jahangir Siddiqui & Co (5.2 million) and TRG Pakistan (4.3 million).

Stocks that contributed positively to the index included Engro (+41 points), Pakistan Oilfields (+21 points), Lucky Cement (+15 points), Searl (+13 points) and Mari Petroleum (+13 points).

Stocks that contributed negatively were MCB (-12 points), Bank Alfalah (-5 points), PSO (-3 points), SNGPL (-3 points) and Kapco (-2 points).

JS Global analyst Danish Ladhani said the benchmark KSE-100 index closed on a bullish note, gaining 231 points at 34,350. “The market remained lacklustre with thin volumes,” he added.

Cement and exploration and production stocks were the major movers. In the cement sector, Kohat Cement (+6.5%), Pioneer Cement (+4.1%), Maple Leaf Cement (+2.5%), Cherat Cement (+2.2%) and Lucky Cement (+1.2%) were among the stocks that closed in the green.

In the exploration and production sector, Pakistan Oilfields (+2.2%), Pakistan Petroleum Limited (+0.6%) and OGDC (+0.5%) remained in the positive zone as international crude oil prices rebounded ahead of a meeting of major oil producers where they would discuss whether to extend record production cuts, he stated.

Engro (+2%), Hubco (+0.4%), OGDC (+0.5%), HBL (+0.4%), Pakistan Petroleum (+0.6%), Lucky Cement (+1.2%) and Pakistan Oilfields (+2.2%) were also the index movers.

Traded value stood very low at $24 million, down 29% and volumes came in at 89 million shares, down 38%. Major contribution to the total market volumes came from Maple Leaf Cement (+2.5%), Jahangir Siddiqui & Co (-0.6%), TRG Pakistan (+0.3%), Unity Foods (+1.3%), Macpac Films (+3.4%) and Hascol Petroleum (+0.1%).

“Going forward, we expect the market to remain range bound and recommend investors to sell on strength ahead of the budget announcement,” the analyst said.

Overall, trading volumes decreased to 89.1 million shares compared with Thursday’s tally of 143.6 million. The value of shares traded during the day was Rs3.9 billion.

Shares of 319 companies were traded. At the end of the day, 191 stocks closed higher, 103 declined and 25 remained unchanged.

Maple Leaf Cement was the volume leader with 6.7 million shares, gaining Rs0.64 to close at Rs25.93. It was followed by Jahangir Siddiqui & Co with 5.2 million shares, losing Rs0.08 to close at Rs12.76 and TRG Pakistan with 4.4 million shares, gaining Rs0.08 to close at Rs27.26.

Foreign institutional investors were net sellers of Rs230.1 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.