Stocks snapped out of a long sluggish streak on Wednesday powered by value-hunting as the rupee continues to surprise on the higher side versus the greenback, traders said.The benchmark KSE-100...
Stocks snapped out of a long sluggish streak on Wednesday powered by value-hunting as the rupee continues to surprise on the higher side versus the greenback, traders said.
The benchmark KSE-100 Shares Index closed higher by 260.99 points or 0.63 per cent to 41,611.42 points at the Pakistan Stock Exchange (PSX).
In a post-session report, Arif Habib Ltd said positive momentum from the previous close continued at the PSX.
“The market remained in a positive zone throughout the day as investors bagged value stocks, while rupee’s unabated recovery against the US dollar helped investors gain confidence,” the brokerage said, adding, "Volumes continued to swell in the mainboard, but third-tier stocks remained in the limelight, it reported. The KSE-30 index jumped by 126.85 points or 0.82 per cent to 15,604.36 points.
Traded shares increased by 42 million to 635.590 million from 593.437 million shares. The trading value rose to Rs10.525 billion from Rs9.350 billion. Market capital expanded to Rs6.817 trillion from Rs6.784 trillion. Out of 351 companies active in the session, 164 moved higher, 163 lower, and 24 without any change.
Topline Securities said initially, the market opened on a positive note, and made an intraday high at 41,668 (+318 points; up 0.77 percent) where the profit taking kicked in forcing the index to settle at 41,611 (+261 points; up 0.63 percent).
Tech, E&P, cement, and fertiliser sector stocks contributed positively to the index where TRG, MARI, LUCK, EFERT, and CHCC added 232 points, cumulatively. On the flip side, PSEL, PPL, and UBL lost 60 points collectively.
The highest increase was recorded in shares of Rafhan Maize, which rose by Rs550 to Rs10,350 per share, followed by Unilever Foods, which increased by Rs500 to Rs25,500 per share.
Significant losses were suffered by Allawasaya Tex, which fell by Rs275.70 to Rs3,890 per share, followed by Sanofi-Aventis, which decreased by Rs89.23 to Rs1,108.77 per share.
Analyst Ahsan Mehanti at Arif Habib Corp said stocks traded higher, led by oil and cement scrips on strong valuations
The bull run in global equities, speculations over ADB loan receipts of $1.5 billion, shrinking $2.88 billion trade deficit for September and rupee recovery underpinned the rally.
Sectors contributing to the performance included technology (+120.5 points), cement (+109.1 points), fertiliser (+23.8 points), E&Ps (+22.0 points), and engineering (+11.1 points).
WorldCall Telecom was the volume leader with 365.167 million shares. The stock fell by 6 paisas to Rs1.57 per share. It was followed by Telecard Limited with 23.103 million. The company closed higher by 55 paisas to Rs11.43 per share.
Other stocks that recorded significant turnover included TRG Pak Ltd, Flying Cement, G3 Technologies, Silk Bank Ltd, Cnergyico PK, G3 TechClassB, K-Electric Ltd, and TPL Properties.
Shares’ turnover in the future contracts increased to 146.536 million shares from 126.271 million shares.
JS Research said investor confidence improved on account of rupee gains and reduction in the trade deficit for Sept-2022.
“Going forward, we recommend investors to avail any downside as an opportunity to buy in the cement, steel and technology sectors,” the brokerage said.