Stocks edged up on Wednesday, with gains in defensive sectors soft economic data, although weakness in overall economy capped gains, dealers said.
The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index gained 70.63 points or 0.17 percent to 40,459.70 points. The highest index of the day remained at 40,534.07 points while the lowest level of the day was recorded at 40,135.23 points. KSE-30 index also increased by 43.52 points or 0.28 percent to 15,368.95 points. Traded shares decreased by 53 million shares to 141.746 million shares from 194.866 million shares. The trading value decreased to Rs4.498 billion from Rs5.784 billion. Market capital slightly expanded to Rs6.818 trillion from Rs6.808 trillion. Out of 325 companies active in the session, 136 closed in green, 169 in red while 20 remained unchanged.
Equities had a mixed session where the benchmark index initially opened on a negative note. However, some buying interest kicked in and assisted market to gain some lost ground by making an intraday high at 40,534 before eventually settled at 40,460 for the day.
Analyst Ahsan Mehanti at Arif Habib Corp said stocks showed recovery in the earnings season rally as investor weigh surging global equities and $31.3 billion strong data on remittances for FY22.
“Post staff level agreement to release IMF tranche this month, reports of 25.53 percent surge in textile group exports in FY22 and slump in global crude oil prices likely reducing economic crises played catalytic role in bullish close,” Mehanti said.
E&P, banks, tech and power sector stocks contributed positively to the index where PPL, OGDC, BAHL, TRG & HUBC added 121 points, cumulatively. On the flip side, EFERT, EPCL and COLG witnessed some profit taking as they lost 60 points collectively.
The highest increase was recorded in shares of Allawasaya Tex, which rose by Rs189.45 to Rs2,715.70 per share, followed by Rafhan Maize, which increased by Rs150 to Rs9,950 per share.
A significant decline was noted in shares of Colgate Palm, which fell by Rs58.98 to Rs2,040.01 per share, followed by Premium Tex., which decreased by Rs56.25 to Rs730 per share.
Analyst Sara Saeed at JS Research, said the index witnessed a volatile session but managed to close in the green. “Going forward, we recommend investors to stay cautious and avail the current downside as a buying opportunity in blue chip stocks,” she advised.
Arif Habib Ltd, in a post market analysis report, said the benchmark index remained sideways due to continuous rupee devaluation against dollar and political unrest. “Volumes remained dry although the last trading hour witnessed value buying in the E&P sector,” it sid.
TPL Properties remained the volume leader with 13.37 million shares that dropped by 35 paisas to Rs17.56 per share. It was followed by WorldCall Telecom with 10.757 million shares that increased by 2 paisas to Rs1.27 per share.
Other stocks that recorded significant turnover included Cnergyico PK, Unity Foods Ltd, Pak Refinery, K-Electric Ltd., Cordoba Logist, Telecard Limited, Sui North Gas and Oil $ Gas Dev.
Shares’ turnover in the future contracts decreased to 42.637 million shares from 55.332 million shares.