Market watch: Stocks extend gains on positive triggers

Benchmark KSE-100 index adds 262.30 points to settle at 46,407.26

KARACHI:

The Pakistan Stock Exchange extended the previous day’s massive gains on Tuesday, as investors continued to celebrate the positive cues emerging in the wake of political stability in the country.

Fresh appreciation of the rupee against the US dollar by 0.5% day-on-day in the inter-bank market continued to trigger bullish sentiment among market players.

Moreover, speculation over the resumption of seventh review of the International Monetary Fund (IMF) loan programme sparked optimism among market participants, who resorted to making fresh purchases.

Earlier, the trading session kicked off with a sharp decline as the benchmark KSE-100 index plunged to an intra-day low of 45,896 points during initial hours.

Until midday, the index continued to fluctuate in a narrow range at around 45,970 points.

Later, the second half witnessed a gradual recovery, as the benchmark index rose to an intra-day high of 46,459 points and finally settled near the 46,500-point mark.

At close, the benchmark KSE-100 index recorded an increase of 262.30 points, or 0.57%, to settle at 46,407.26 points.

Topline Securities, in its report, said that Pakistan equities continued their bullish momentum and closed the day at 46,407 points.

“News flow regarding resumption of seventh review of the IMF has provided some stability as far as investor sentiment is concerned,” it pointed out.

Technology, bank and cement-sector stocks contributed positively to the benchmark index, where TRG Pakistan, Meezan Bank, Maple Leaf Cement and Avanceon Limited added a cumulative 153 points.

On the flip side, Mari Petroleum, Pakistan State Oil and MCB Bank faced some profit-taking and lost 32 points collectively, Topline said.

A report of Arif Habib Limited stated that another positive session was witnessed at the bourse due to political stability and appreciation of the Pakistani rupee against the US dollar.

A rally was witnessed across the board regardless of foreign selling. Main board activity remained healthy. The market even witnessed hefty volumes in third-tier stocks, the report said.

Sectors contributing to the performance included technology (+96.7 points), cement (+55.7 points), banks (+52.2 points), engineering (+24.9 points) and refinery (+20 points).

JS Global analyst Neelam Naz said that the bourse witnessed another positive session with the KSE-100 index gaining 262 points day-on-day.

Worldcall Telecom (-2.8%), Telecard Limited (+4.5%), Flying Cement (-8.6%), Cnergyico PK (+0.7%), Unity Foods (+5.3%) and Ghani Global Holdings (+7.4%) were among the volume leaders, she said.

Major contributors to the index were TRG Pakistan, Meezan Bank, Maple Leaf Cement, Avanceon Limited, Unity Foods and Cherat Cement.

“Going forward, investors are advised to book profits as the market approaches the 47,000 level,” the analyst said.

Overall trading volumes dipped to 493.6 million shares compared with Monday’s tally of 557.7 million. The value of shares traded during the day was Rs13.9 billion.

Shares of 359 companies were traded. At the end of the day, 172 stocks closed higher, 172 declined and 15 remained unchanged.

WorldCall Telecom was the volume leader with 62 million shares, losing Rs0.06 to close at Rs2.07. It was followed by Telecard Limited with 32.7 million shares, gaining Rs0.73 to close at Rs16.96 and Flying Cement with 30.9 million shares, losing Rs0.83 to close at Rs8.8.

Foreign institutional investors were net sellers of Rs161.6 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.