Market watch: Stocks rally as global equities recover
Shares of 356 companies were traded. At the end of the day, 200 stocks closed higher. PHOTO: REUTERS
The Pakistan Stock Exchange on Friday got some relief from yesterday’s free fall and recovered slightly as a rebound in global equity markets and slide in international crude oil prices revived the interest of nervous investors.
The benchmark KSE-100 index, despite minor fluctuations, mostly stayed in the positive territory to close last day of the volatile week in the green.
Moreover, strong corporate earnings announcements by major companies instilled optimism among market players, as across-the-board buying activity was observed.
However, the trading volume remained lower as compared to the previous day that saw heavy selling at the bourse.
Earlier, the session kicked off with a sharp incline as the benchmark index touched an intra-day high of 44,192 points as soon as trading began.
Later, during the first half, the index recorded minor oscillations but managed to stay in the positive territory.
The second half started with a steady decline, which saw the index touch an intra-day low of 43,806 points.
However, the index made a “V-shaped” recovery towards close and ended trading in the positive territory, in line with global equity markets.
At close, the benchmark KSE-100 index recorded an increase of 153.73 points, or 0.35%, to settle at 43,984.24 points.
Topline Securities, in its report, said that in line with international markets, the benchmark KSE-100 index traded in the positive zone for most part of the session.
Major contribution to the index came from Fauji Fertiliser, Meezan Bank, Engro Corporation, Pakistan Tobacco and Unity Foods, as they cumulatively contributed 114 points to the index.
On the flip side, National Bank of Pakistan, Pakistan Petroleum, TRG Pakistan, Oil and Gas Development Company and MCB Bank lost ground and erased 107 points from the index, it said.
In the automobile sector, Indus Motor Company declared results for the Oct-Dec quarter of fiscal year 2021-22, where it posted earnings per share of Rs60.43 and an interim dividend of Rs30 per share, in line with industry expectations, the report said.
In the exploration and production sector, Pakistan Petroleum declared results for the second quarter of fiscal year 2021-22, where it announced earnings per share of Rs5.41 and an interim dividend of Rs1.5 per share, which was lower than industry estimates due to higher share of losses from associates, the report added.
JS Global analyst Waqar Iqbal said that the market remained dull where most of the trading was witnessed in the first half.
WorldCall Telecom, Telecard Limited, Ghani Global Holdings, Unity Foods and Cnergyico PK were the volume leaders.
“Going forward, a range-bound activity is expected to continue as investors are concerned about the country’s macroeconomic situation,” the analyst said.
Overall trading volumes decreased to 241.6 million shares compared with Thursday’s tally of 350.1 million. The value of shares traded during the day was Rs6.7 billion.
Shares of 356 companies were traded. At the end of the day, 200 stocks closed higher, 130 declined and 26 remained unchanged.
WorldCall Telecom was the volume leader with 33.3 million shares, gaining Rs0.04 to close at Rs1.72. It was followed by Flying Cement (R) with 15.4 million shares, losing Rs0.1 to close at Rs1.09 and Telecard Limited with 11.1 million shares, losing Rs0.34 to close at Rs13.85.
Foreign institutional investors were net sellers of Rs135.2 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.