Stocks on Thursday continued to hover within the ‘minimum risk zone’ with selective buying seen in oil, gas, and food as COVID-wary investors found themselves worrying over national security after tensions erupted on Pakistan-India border, dealers said.
Pakistan Stock Exchange’s (PSX) benchmark KSE-100 shares index gained 0.24 percent or 101.81 points to close at 42,305.84 points. Volumes increased to 472.363 million shares, as compared to 438.146 million on Wednesday. KSE-30 lost 0.11 percent or 19.43 points to end at 17,671.83 points level.
Topline Securities in its daily market review said after a sideways opening, market remained positive through the day making an intraday high of 237 points.
FFC, TRG, and HBL were the major gainers in today’s trading session contributing 70 points to the index, the brokerage said.
A A Soomro, managing director at KASB Securities, said the market managed to close in the positive territory with interest continuing to remain focused on technology, refineries, Unity Foods, PIBTL, and Azgard 9.
“The main board is still not moving yet. However, the valuations are too good to be ignored.”
“Protest in India prompted Pakistan Army to stand high alert, which gave investors some cold feet, while Asad Umarss warning of likely tougher COVID-related restrictions was more or less disregarded by the investors,” he said.
"We expect the flattish-upward trend to continue on weekend given the COVID-19 situation doesn’t deteriorate further,” Soomro added.
Muhammad Saeed Khalid, head of research at Shajar Capital, said the stock market remained mixed during the day mainly on the prevailing uncertainty on the LoC (Line of Control) along with the ongoing protest by the PDM (Pakistan Democratic Alliance).
The benchmark index marked an intra-day high of 42,441 points mainly on the recovery in the international oil prices that led the robust activity in the refinery sector, he said.
“On the technology sector side, we have noticed bullishness in TRG, AVN, and NETSOL, where we saw average trading volume of 34 million shares, 8.6 million shares, and 5.26 million shares respectively,” Khalid added.
Trading activity was recorded in 400 active scrips, of which 194 gained, 190 lost, and 16 remained unchanged.
Ansreen Malik from BMA Equity sales said, "The market has been seen moving in a narrow range throughout this week”.
“Any dips should be considered a good opportunity to buy banks for dividends and oil and gas exploration and production companies,” Malik added.
Ahsan Mehanti from Arif Habib Corporation said stocks closed bullish amid higher trades led by selected cement, banking, and fertiliser scrips on strong valuations.
Investor concerns over foreign outflows, uncertainty in global equities and surging circular debt invited mid-session pressure, he said.
Strong exports, home remittances, $7.7 million single-day record receipt in Roshan Digital Accounts, and World Bank’s approval for $300 million loan contributed to a positive close,” Mehanti added.
Rafhan Maize, up Rs309 to close at Rs9,100/share, and Sapphire Textile, strengthening Rs73 to finish at Rs1,059/share were the top gainers of the day.
Gatron Industries, down Rs37.48 to close at Rs500.02/share, and Nestle Pakistan, losing Rs25 to close at Rs6,725/share, ended up as the worst losers.
Pakistan International Bulk was the volume leader with 50.015 million shares and gained Rs0.65 to end at Rs13.55/share. Siddiqsons Tin Plate Limited’s turnover was the lowest with 10.396 million shares, while it lost Rs0.26 to end at Rs18.50/share.