Market watch: Stocks gain ground in range-bound session
Shares of 337 companies were traded. At the end of the day, 151 stocks closed higher, 163 declined and 23 remained unchanged. PHOTO: FILE
The Pakistan Stock Exchange managed to make some recovery on Tuesday in a range-bound session, as investors opted to assume fresh positions at attractive valuations following a “bloodbath” on the previous trading day.
The benchmark KSE-100 index, after fluctuating throughout the day, added around 111 points to settle in the green zone.
The continuously depreciating rupee against the US dollar, however, capped gains at the bourse, as it continued to haunt the overall trading environment.
The rupee fell to an all-time low in the inter-bank market on Tuesday, standing at Rs188.66 against the dollar.
Moreover, the unstable political and economic situation in the country also kept stock trading dull, as sceptical investors awaited positive cues.
Earlier, the session commenced on a positive note as the benchmark index, after oscillating in a narrow range, touched an intra-day high of 43,647 points in the initial hours. The rally came mainly due to value hunting by the investors.
However, the index started to lose shine and fell to an intra-day low of 43,263 points by midday, as market participants started weighing the impact of the falling rupee.
Late session buying supported the index to recover the losses and settle in the positive territory.
At close, the benchmark KSE-100 index recorded an increase of 111.22 points, or 0.26%, to settle at 43,504.36 points.
Topline Securities, in its report, said that after a selling spree in the previous session, Pakistan’s equities witnessed a mixed session on Tuesday.
Initially, the market opened on a negative note and hit an intra-day low of 131 points.
“At the aforesaid level, value hunting kicked in, which supported the benchmark index to touch an intra-day high of 254 points before getting settled at 43,504 points,” Topline said.
Technology, chemical, fertiliser, exploration and production and power sectors contributed positively to the index, where TRG Pakistan, Colgate-Palmolive (Pakistan) Limited, Engro Corporation Limited, Pakistan Oilfields Limited and Hub Power Company added 120 points cumulatively.
On the flip side, Systems Limited, United Bank Limited and Millat Tractors faced some profit-taking as they lost 49 points collectively.
A report of Arif Habib Limited stated that the market witnessed a range-bound session, as the Pakistan Stock Exchange opened on a positive note but remained volatile due to the continuation of rupee depreciation against the US dollar amid political and economic uncertainty that kept investors at bay.
The market remained lacklustre throughout the day. “Main board continued to remain dry, whereas hefty volumes were observed in third-tier stocks,” it said.
Sectors contributing to the performance included fertiliser (+40.7 points), technology (+27.6 points), oil marketing companies (+12.7 points) and power (+10.8 points).
JS Global analyst Mohammad Waqar Iqbal said that the bourse witnessed range-bound activity on Tuesday. The KSE-100 index closed at 43,504, gaining 111 points day-on-day.
Cnergyico PK (+2.3%), Pakistan Refinery Limited (+0.1%), Pakistan International Bulk Terminal (+2%), Lotte Chemical Pakistan Limited (-0.9%) and Telecard Limited (-0.9%) were the volume leaders.
“Going forward, we expect range-bound activity to continue and recommend investors to avail any downside as an opportunity to buy in cement and textile sectors for short-term trades,” the analyst said.
Overall trading volumes decreased to 233.9 million shares compared with Monday’s tally of 305.2 million. The value of shares traded during the day was Rs6.9 billion.
Shares of 337 companies were traded. At the end of the day, 151 stocks closed higher, 163 declined and 23 remained unchanged.
Cnergyico PK was the volume leader with 19.1 million shares, gaining Rs0.13 to close at Rs5.69. It was followed by Pakistan Refinery Limited with 13.9 million shares, gaining Rs0.01 to close at Rs15.01 and Pakistan International Bulk Terminal with 13.2 million shares, gaining Rs0.12 to close at Rs6.15.
Foreign institutional investors were net sellers of Rs218.8 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.