Stocks rebound on Telenor’s acquisition deal

KSE-100 index rises 170.03 points, settles at 65,450.19

KARACHI:

Pakistan Stock Exchange (PSX) on Thursday recovered from the previous day’s massive correction as investors returned to bid for attractive stocks in the backdrop of Pakistan Telecommunication Company Limited’s (PTCL) acquisition of 100% stake in Telenor.

In the morning, trading started off on a lacklustre note but soon the KSE-100 index took a plunge to the intra-day low of 64,437.69 points when investors resorted to profit-booking.

However, strong sectors like exploration and production (E&P), refineries, fertiliser and banks helped the index wipe out the losses. The market continued to fluctuate for the rest of the day and touched the intra-day high at 65,622.55 towards the end of trading.

Pakistani rupee stability and optimism about the overall economic situation extended support and kept the index in the green. It closed the day with modest gains of 170 points.

“Stocks showed recovery, led by oil, banking and fertiliser shares due to strong valuations,” said Arif Habib Corp MD Ahsan Mehanti.

“The finance minister’s affirmation of fiscal and external sector stability, rupee stability and merger and acquisition (M&A) deals in telecom, banking and oil sectors played the role of catalysts in bullish close of the PSX.”

At close, the benchmark KSE-100 index recorded a rise of 170.03 points, or 0.26%, and settled at 65,450.19.

Topline Securities, in its report, wrote that trading of Pakistani equities commenced with a downward trend, which extended the decline to revisit the previous day’s low around 64,400.

“However, buyers stepped in and effectively maintained support at this level once again,” it said.

Consequently, the market traded within a specific range for the remainder of the session, concluding at 65,450 with an increase of 170 points.

Sectors contributing to the gains were fertiliser, E&P and banks as Pakistan Petroleum, Fauji Fertiliser, Oil and Gas Development Company, The Bank of Punjab and MCB Bank collectively added 271 points, Topline added. Arif Habib Limited (AHL) commented that stocks recovered from Wednesday’s lows with a rally in E&P and refinery sectors.

Read Stocks undergo sharp correction on profit-taking

The ratio of advancers to decliners stood balanced at 48:46. Key index movers were Pakistan Petroleum (+4.89%), Fauji Fertiliser (+2.16%) and Oil and Gas Development Company (+2.03).

Biggest laggards were Meezan Bank (-2.39%), United Bank (-1.21%) and Hub Power (-0.73%), it said.

Besides, news of 100% acquisition of Telenor by PTCL and the purchase of GO shareholding by Saudi Aramco instilled hope that more M&A would come in 2024. “Support remains at 64k and resistance at 66.6k,” AHL added.

JS Global analyst Mubashir Anis Naviwala said that a volatile session was witnessed at the PSX with the KSE-100 settling at 65,450, gaining 170 points.

“We expect the bullish trend to continue and recommend investors to view any downside as an opportunity to buy stocks in banking, cement and E&P sectors. Investors should exercise caution and wait for dips before making fresh buying,” the analyst said.

Overall trading volumes decreased to 981.2 million shares against Wednesday’s tally of 1.4 billion. The value of shares traded during the day was Rs23.7 billion

Shares of 389 companies were traded. Of these, 198 stocks closed higher, 174 dropped and 17 remained unchanged.

Kohinoor Spinning was the volume leader with trading in 160.2 million shares, gaining Rs0.76 to close at Rs5.40. It was followed by The Bank of Punjab with 89.8 million shares, gaining Rs0.68 to close at Rs6.97 and Hascol Petroleum with 79.3 million shares, gaining Rs0.63 to close at Rs8.33.

Foreign investors were net buyers of shares worth Rs143.6 million, according to the NCCPL.

Published in The Express Tribune, December 15^th, 2023.

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