Market watch: Stocks log gains for fifth consecutive day

KARACHI:

Stocks amassed more gains on Friday, extending a strong rally into the fifth day, mainly in line with the bull-run in global equities and oil markets.

The exploration and production sector had a spillover impact of the uptick in global oil prices as major producers agreed on a compromise to increase output slightly from January but continue the bulk of existing supply curbs to cope with the coronavirus-hit demand.

The index shot up as soon as trading began and rose at a steady pace throughout the day, buoyed by optimism and strong investor interest. A few dips, seen during the session, were corrected timely.

At close, the benchmark KSE-100 index recorded an increase of 159.28 points, or 0.38%, to settle at 42,207 points.

Arif Habib Limited, in its report, stated that the market traded range bound, although it remained positive during the day, but lacked excitement from investors to make a forward move.

Investors remained cautious in the exploration and production sector as crude oil prices rose in the international market after OPEC+ made the decision for a gradual increase in output in 2021.

Oil and gas marketing companies and cement sector stocks came under selling pressure on concern over political uncertainty as well as index correction after an increase of around 2,800 points.

During the day, the index went up by 269 points, however, selling pressure in the last half hour brought it down. It ended trading up by 159 points.

Sectors contributing to the performance included exploration and production (+61 points), banks (+57 points), technology (+31 points), oil and gas marketing companies (-16 points) and fertiliser (-12 points).

Individually, stocks that contributed positively to the index included Oil and Gas Development Company (+38 points), TRG Pakistan (+26 points), UBL (+15 points), Pakistan Petroleum (+12 points) and Habib Metropolitan Bank (+11 points).

Stocks that contributed negatively were Fauji Fertiliser (-12 points), Millat Tractors (-11 points), Sui Northern Gas Pipelines (-8 points), Pakistan State Oil (-7 points) and Engro Fertilisers (-6 points).

Overall, trading volumes rose to 427.9 million shares compared with Thursday’s tally of 420.3 million. The value of shares traded during the day was Rs18.2 billion.

Shares of 409 companies were traded. At the end of the day, 234 stocks closed higher, 151 declined and 24 remained unchanged.

TRG Pakistan was the volume leader with 42.6 million shares, gaining Rs2.5 to close at Rs72.57. It was followed by Pakistan Refinery with 30.97 million shares, gaining Rs0.49 to close at Rs20.13 and Pakistan Telecommunication Company Limited with 21.7 million shares, gaining Rs0.22 to close at Rs9.20.

Foreign institutional investors were net buyers of Rs618.6 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.