Stocks closed higher on Thursday with thin volumes amid expectations of financial support from friendly countries and expectations of higher corporate earnings, traders said.
Pakistan Stock Exchange (PSX) benchmark KSE 100-share Index inched up 0.44 percent or by 177.44 points to stand at 40,716.76 points against 40,539.30 points recorded in the last session. Intraday high was 40,790.35 points, while the lowest level of the day was recorded at 40,539.30 points.
Ahsan Mehanti, an analyst at Arif Habib Corp, said stocks showed recovery led by oil and banking scrips as investors weighed finance minister’s hints of over $3 billion Saudi bailout and $1.2 billion refinancing from China. It was also supported by surging global crude oil prices with expectations of record annual payouts in the banking sector.
Speculations ahead of corporate earnings announcements, surging fertiliser prices and expectations for government slashing gas circular debt to $900 billion also played a catalytic role in the bullish close, he said.
KSE-30 index increased by 101.56 points or 0.68 percent to stand at 15,053.38 points compared with 14,951.82 points recorded in the last session.
Traded shares decreased by 31 million shares to 111,790 million shares from 142.881 million shares. Value dropped to Rs3.095 billion from Rs4.334 billion. Market capital stood unchanged at Rs6.489 trillion. Out of 308 companies active in the session, 124 closed in green, 161 in red and 23 remained unchanged.
Analyst Ali Najib at Topline Securities said equities had a positive day with low volumes. “The cautious market behaviour can be attributed to the market expectation regarding some breakthrough on the circular debt front, confirmation of funds flow from friendly countries and donor conference (scheduled on January 9, 2023),” he said.
During the day, Engro, Pakistan Services, Systems Limited, Pakistan Petroleum, and Oil and Gas Development Company contributed 187 points to the index. On the flip side, Indus Motors, Meezan Bank, and Nestle saw some profit-taking as they lost 32 points, collectively.
The highest increase was recorded in the shares of Pak Services, up Rs108.79 to close at Rs1,775/share, followed by Bhanero Tex, up Rs72 to close at Rs1,032/share. A significant decline was noted in the shares of Rafhan Maize, down Rs250 to end at Rs9,349/share, followed by Nestle Pakistan, down Rs140 to end at Rs5,610/share.
Arif Habib Ltd said another range-bound session was recorded at the PSX. “The benchmark KSE-100 index opened in the green and made an intraday high of 251.44 points and traded in the narrow range throughout the trading session,” it reported.
The prevailing political and economic uncertainty kept the investors at bay as volumes in the mainboard declined considerably while 3rd tier stocks continued to dominate the volume board.
Sectors contributing to the performance included fertilisers (+68.9 points), miscellaneous (+55.9 points), E&Ps (+54.4 points), technology and communication (+31.7 points), and investment banks/investment companies/securities companies. (+8.6 points).
K-Electric remained the volume leader with 18.615 million shares. Its scrip decreased by 7 paisas to close at Rs2.37/share. It was followed by Cnergyico PK with 8.535 million shares that closed higher by 4 paisas to Rs3.78/share.
Other stocks that recorded significant turnover included Bankislami Pak, Sui Northern Gas Pipelines, WorldCall Telecom, Al Shaheer (R), Pak Petroleum, Sui Southern Gas Company, Hum Network and OGDC.
Shares’ turnover in the future contracts decreased to 26.107 million shares from 31.727 million shares.