Stocks inch up despite heavy buying in late-hour

Stocks market closed marginally up on Monday as the rate cut-hit banking sector trimmed the gains of the late hours by cement and energy scrips, dealers said.

Analyst Ahsan Mehanti at Arif Habib Corp said the market touched fresh highs, led by cement, fertilisers and oil scrips after a surprise cut in the policy rate by 25 basis points to 5.75 percent on Saturday. 

The Pakistan Stock Exchange’s (PSX) benchmark 100-share Index ended up 29.85 points, or 0.08 percent, to 36,723.35 points. The highest index of the day was 36,752.62 points and the lowest level was recorded at 36,432.15 points.

KSE 30-share Index was, however, lowered 33.37 points, or 0.16 percent, to 21,362.58 points.

Turnover decreased 129 million shares to 265.54 million shares. Trading value was cut to Rs10.70 billion as against Rs11.55 billion and the market capital fell to Rs7.47 trillion from Rs7.48 trillion. Of a total of 366 companies, 183 closed up, 162 ended down and 21 remained unchanged.

“We remain bullish on the market and recommend accumulation in dips, ahead of the MSCI reclassification,” said Arhum Ghous, an analyst at JS Global.

Bears dominated the banking sector. Major laggards were MCB (down five percent), HBL (decreasing 2.80 percent) and UBL (dropping 2.61 percent).

Leveraged stocks led the pre-budget rally on a likelihood of new corporate taxes. “Sentiments were upbeat on developments in CPEC (China-Pakistan economic corridor) projects and expected MSCI (Morgan Stanley Capital International) upgrades next month played a catalyst role in positive close,” Mehanti said.  Ghous said the market opened on a negative note as the index fell to make an intraday low of 36,433 points but heavy buying was witnessed during the late hours.

PPL (up 0.28 percent) continued its upward trajectory on the gas discovery and lease extension. 

Highest increase was recorded in Rafhan Maize. Its share price rose Rs423.15 to Rs8,886.15/share, followed by Nestle Pak XD that increased Rs100 to Rs7,100/share. Major decrease was recorded in Pak Tobacco. Its stock value fell Rs37.15 to Rs1,110/share, followed by Bhanero Textile that decreased Rs24.89 to Rs700.11/share.  Significant turnover was recorded in stocks of K-Electric Ltd, Sui Northern Gas Pipeline Limited, Jahangir Siddiqui Co, Pak Int Bulk, Byco Petroleum, Dewan Cement, Pak Refinery, Telecard Limited, Dewan Motors and TRG Pak Ltd.

K-Electric Ltd was the volume leader with 49.92 million shares with an increase of 23 paisas to Rs7.93/share. It was followed by SNGPL with 19.67 million shares with an increase of Rs1.41 to Rs37.72/share.

Shares’ turnover in the future contracts increased to 86.48 million shares from 42.59 million shares traded in the previous session.