Stocks gain ground in volatile trading

KSE-100 index rises 297.25 points, settles at 64,646.85

KARACHI:

Pakistan Stock Exchange faced a mix of upside and downside movement on Wednesday and resultantly the KSE-100 index swung between green and red zones, managing to end the day in the green.

The bourse commenced the day on a positive note but very soon came under pressure from profit-taking.

The market recovered from its initial downward trend and reached the intra-day high of 65,244.60 points as value hunters, especially in the exploration and production (E&P), fertiliser, tobacco and cement sectors, took control of the market.

However, due to the prevailing uncertainty, the index kept trading in a narrow range during final hours and was unable to surpass the 65,000-point mark for another day.

“Bullish activity was witnessed amid upbeat data on exports that surged 22.2% year-on-year (YoY) to $2.81 billion, trade deficit which shrank 40% YoY to $1.7 billion and cement dispatches that increased 4.6% YoY in December 2023,” said Arif Habib Corp MD Ahsan Mehanti.

“Investor speculation ahead of major earnings’ announcements, which are due next week, rupee stability and potential release of IMF tranche this month played the role of catalysts in bullish close at the PSX.”

At close, the benchmark KSE-100 index recorded an increase of 297.25 points, or 0.46%, and settled at 64,646.85.

Topline Securities, in its report, declared the day as “a tug of war”. Pakistan equities had a mixed day, which kicked off on a positive note and the KSE-100 index hit an intra-day high at 65,241 (+895 points, or 1.39%), it said.

At the aforesaid level, profit-taking was seen, which compelled the benchmark index to shed earlier gains and ultimately settled at 64,647 (+297 points, or 0.46%). During the day, the index touched the intra-day low at 64,220 (-130 points, or 0.20%).

E&P, fertiliser, tobacco and cement sectors contributed the most as Oil and Gas Development Company, Pakistan Petroleum, Fauji Fertiliser Company, Pakistan Tobacco and Kohat Cement added 267 points to the index.

On the flip side, Millat Tractors, Meezan Bank and Pakistan State Oil cumulatively lost 74 points due to profit-taking, Topline added.

Read PSX gets off to flying start in 2024

Arif Habib Limited (AHL), in its review, wrote “intra-day highs again failed at the weekly target of 65,000, leaving open the potential for a decline to 63,000”.

“The outlook remains positive and declines to the support level should be bought to target 67,000,” the AHL report said.

JS Global analyst Muhammad Shuja Qureshi said another volatile session was witnessed at the PSX. The steel sector posted handsome gains with International Industries and Amreli Steels closing at their upper circuits.

“Market volatility may continue in the coming sessions on election-related news flow; investors are advised to stay cautious and accumulate value stocks on dips,” the analyst added.

Overall trading volumes decreased to 639.6 million shares against Tuesday’s tally of 671.7 million. The value of shares traded during the day was Rs20.3 billion.

Shares of 366 companies were traded. Of these, 190 stocks closed higher, 159 dropped and 17 remained unchanged.

K-Electric was the volume leader with trading in 127.8 million shares, gaining Rs0.17 to close at Rs5.47. It was followed by Pakistan Telecommunication Company with 50.4 million shares, gaining Rs0.74 to close at Rs13.49 and Pakistan Refinery with 35.8 million shares, losing Rs1.91 to close at Rs28.06.

Foreign investors were net sellers of shares worth Rs550.6 million, according to the NCCPL.

Published in The Express Tribune, January 4^th, 2024.

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