Stocks blasted off to the upside on Thursday after China’s avowal to back Pakistan in thick and thin sent sentiments through the roof sparking pre-earnings season institutional buying in big names, traders said.
Pakistan Stock Exchange's (PSX) benchmark KSE-100 Share Index jumped 805.25 points or 1.70 percent to 48,053.17 points, while it touched a day low of 47,247.92 points during the trade. Speaking at a seminar on Wednesday, Chinese State Councilor and Foreign Minister Wang Yi said, “No matter how the international landscape shifts, China will always stand side by side with Pakistan and staunchly support it in safeguarding national independence, sovereignty, and territorial integrity, and in blazing a development path suited to Pakistan's national realities to realise the grand vision of a ‘New Pakistan’ ”.
Ahsan Mehanti, senior analyst at Arif Habib Corp said, stocks showed major recovery led by shares across the board in late session institutional buying on speculations as the earnings season approaches.
Government tax relief for the auto sector, surge in local cement, fertiliser prices and upbeat $2.7 billion record exports data in June gave the market a much-needed boost, Mehanti said.
He however added that rupee instability and concerns over regional uncertainty created a mid-session pressure that might have held some gains back. Following the broader market, KSE-30 Share Index also soared 392.85 points or 2.07 percent to close at 19,365.90 points.
Muhammad Arbash, analyst at Topline Securities, said after a positive opening the benchmark index continued its morning momentum throughout the day as investors cheered the statement of Chinese foreign minister that China would always stand firmly with Pakistan, while lower international oil prices also helped the morale. Investor interest was mostly witnessed in the tech and cements sector as TRG and LUCK were the major gainers.
Zafar Moti, former director PSX, said the index shot up on trading in big scrips, while volumes were low.
“Since there is no work in other markets including wholesale and retail, people traded here.”
He said the price floor of the 47,000 point level was very strong, where the market received trading at least twice.
“Otherwise, the trend was mixed in the market,” Moti said.
Total traded volume increased 16 percent or 63 million shares to 475.23 million shares against 412.20 million in the previous session. Trading value jumped 43 percent to Rs21.31 billion from Rs14.97 billion a day earlier. On the other hand market capital rose to Rs8.372 trillion from Rs8.261 trillion. Of 429 active shares, 312 made gains, 96 lost value, while 21 ended without a change.
Nestle Pakistan, up Rs170 to close at Rs5,990 per share, was the top gainer of the day, followed by Gatron Industries that added Rs35.63 to end at Rs510.78 per share.
Wyeth Pak Ltd emerged as the worst loser by shedding Rs45.22 to finish at Rs2,035.17 per share, followed by Sapphire Fiber that gave up Rs44 to end at Rs796 per share.
Moreover, in a notice to the PSX, Hascol Petrol rejected social media rumors against its performance, saying the company was on the path to progress.
TPL Corp Ltd was the highest traded stock with 30.16 million shares, while it gained Rs1.28 to close at Rs18.38 per share. It was followed by WorldCall Telecom with 28.43 million shares that closed higher by one paisa to Rs3.92 per share. Turnover in the future contracts increased to 89.26 million shares from 62.99 million shares traded in the previous session.