Bulls keep firm grip over robust exports

KSE-100 index rises 609.18 points, settles at 63,002.92

KARACHI:

Bulls remained in the driving seat at the Pakistan Stock Exchange (PSX) on Friday as the market added another nearly 610 points following robust export data that showed a surge of 26.9% year-on-year to $2.786 billion in January.

In the morning, trading kicked off on a volatile note in the wake of central bank’s announcement a day ago about a decrease of $54 million in its foreign exchange reserves that reached $8,216 million.

As urea sales went down 3% year-on-year and 2% month-on-month in January, market players moved cautiously. Consequently, the index hit its intra-day low at 62,448.72 in the first hour of trading.

However, a considerable drop in the Sensitive Price Indicator (SPI) showing a decrease in food prices, stable rupee and hopes for political certainty after February 8 polls provided support to investor sentiment in the latter half of the day.

Positive contribution mainly came from sectors like automobile assemblers and commercial banks, which helped keep the market in the green and took it to the intra-day high at 63,075.30.

At close, the benchmark KSE-100 index recorded an increase of 609.18 points, or 0.98%, and settled at 63,002.92.

Topline Securities, in its commentary, wrote that the KSE-100 index extended its previous day’s gains and largely traded in the positive zone to close at 63,003, up 0.98%.

Overall investor participation in the market continued to be at the lower end as they preferred to remain on sidelines before the upcoming general elections slated for February 8, it said.

Major positive contribution to the index came from Millat Tractors, Engro Fertilisers, Oil and Gas Development Company, MCB Bank and Lucky Cement, which cumulatively contributed 299 points, Topline added.

Arif Habib Limited (AHL), in its report, wrote that the market remained strong and regained 63k at the close of the week, limiting the week-on-week decline to 1.22%.

The advancers-to-decliners’ ratio stood at 63:20 where leading positive contributors were Millat Tractors (+5.63%), Engro Fertilisers (+3.07%), and Oil and Gas Development Co (+2.32%).

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“The close above first resistance at 62.5k is constructive, which needs to be built as support next week to set up a move towards 64k,” AHL added.

JS Global analyst Mohammed Waqar Iqbal noted that the bourse witnessed a range-bound activity with the KSE-100 moving between the high and low of 63,075 and 62,449 points, respectively.

Traded volume stood at 264 million shares with K-Electric (+4.9%), Pakistan International Airlines (+8.6%), Pakistan Petroleum (-1.3%), Hascol Petroleum (+2.5%) and Oil and Gas Development Co (+2.3%) among the volume leaders, he said.

“Going forward, we expect range-bound activity to continue as election concerns remain. Investors are advised to avail of any downtrend as an opportunity to buy in exploration and production, cement and textile sectors,” the analyst added.

Overall trading volumes decreased to 263.5 million shares against Thursday’s tally of 270.5 million. The value of shares traded during the day was Rs10.7 billion.

Shares of 336 companies were traded. Of these, 217 stocks closed higher, 92 dropped and 27 remained unchanged.

K-Electric was the volume leader with trading in 26.6 million shares, gaining Rs0.22 to close at Rs4.68. It was followed by the Pakistan International Airlines with 25.8 million shares, gaining Rs0.87 to close at Rs10.94 and Pakistan Petroleum with 18.5 million shares, losing Rs1.46 to close at Rs114.34.

Foreign investors were net buyers of shares worth Rs181.6 million, according to the NCCPL.

Published in The Express Tribune, February 3^rd, 2024.

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