Market watch: Stocks rise as geopolitical dust settles

Benchmark KSE-100 index adds 87.61 points to settle at 45,731.70

KARACHI:

The Pakistan Stock Exchange witnessed a topsy-turvy session on Tuesday, as the benchmark KSE-100 index after oscillating in a narrow range managed to post decent gains in the end.

Anxious investors took a sigh of relief on news that Russian troops were pulled back from Ukraine’s border, which also eased the pressure on global crude oil prices.

That development aided Pakistan’s bourse to post a U-shaped recovery in late hours of the day.

Even so, market players were observed taking a cautious approach over geopolitical tensions, rising global commodity prices and depreciating rupee against the US dollar.

Earlier, trading began on a dull note as the benchmark index fluctuated in a narrow range and closed first half of the session in the negative territory.

As second half of the session commenced, the index touched an intra-day low of 45,503 points. However, it later started its journey towards north and touched an intra-day high of 45,804 points. A selling spree in the final hour erased some of the gains.

At close, the benchmark KSE-100 index recorded an increase of 87.61 points, or 0.19%, to settle at 45,731.70.

“Investor confidence remained in check over geopolitical conditions and higher commodity prices,” a report of Topline Securities said.

On the results front, Hub Power Company announced earnings per share of Rs3.7 for the second quarter (Oct-Dec) of fiscal year 2021-22, down 42% year-on-year, which led the stock to close 2.54% lower, the report added.

Arif Habib Limited, in its report, stated that the market witnessed range-bound activity due to mounting international oil prices.

The index opened on a positive note at the start of trading and managed to close positive with a rise of 88 points.

Among independent power producers (IPPs), Hub Power Company remained under pressure due to “disappointing financial results”, the report said.

In the banking sector, Askari Bank Limited made the journey towards its lower circuit due to no payout in the financial results. “Mainboard activity remained dull,” it said.

Sectors contributing to the performance included fertiliser (+31 points), technology (+31 points), automobile (+19 points), cement (+14 points) and investment banks (+11 points).

JS Global analyst Waqar Iqbal said that the market started on a bearish note but took respite in late hours as news about the pullback of Russian troops from Ukraine’s borders surfaced.

“International oil prices also took an intra-day dip from the highs of $96.5 a barrel,” he said. The KSE-100 index closed at 45,732, gaining 88 points day-on-day.

Major volume leaders were WorldCall Telecom, K-Electric, Telecard Limited, TPL Properties and TRG Pakistan.

“Going forward, the market is expected to remain range bound, hence it is recommended to book profits at current levels,” the analyst said.

Overall trading volumes rose to 274.6 million shares compared with Monday’s tally of 187.8 million. The value of shares traded during the day was Rs6.8 billion.

Shares of 336 companies were traded. At the end of the day, 200 stocks closed higher, 118 declined and 18 remained unchanged.

WorldCall Telecom was the volume leader with 91.9 million shares, losing Rs0.09 to close at Rs1.96. It was followed by K-Electric with 22.7 million shares, gaining Rs0.11 to close at Rs3.53 and Telecard Limited with 10.1 million shares, gaining Rs0.54 to close at Rs16.86.

Foreign institutional investors were net sellers of Rs130.86 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.