Stocks inch higher as technology shares gain

Stocks inched higher in range-bound trade on Wednesday, with gains in technology and fertiliser outweighing losses in energy shares, while caution prevailed ahead of final outcome from the FATF meeting on Pakistan.

The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index closed higher by 83.82 points or 0.20 percent to 41,839.27 points. The highest index of the day remained at 42,008.21 points while the lowest level of the day was recorded at 41,755.45 points.

KSE-30 index closed with an increase of 1.84 points or 0.01 percent to 15,426.01 points. Traded shares increased by 46 million shares to 190.311 million shares from 144.312 million shares.

The trading value rose to Rs5.809 billion from Rs4.667 billion. Market capital expanded to Rs6.785 trillion from Rs6.784 trillion. Out of 350 companies active in the session, 175 closed in green, 163 in red and 12 remained unchanged.

Analyst Ahsan Mehanti at Arif Habib Corp said stocks showed some recovery led by selected scrips across the board in the earnings season rally amid speculations on FATF decision this week over likely exit from the grey list.

“Positive global equities, US positive statement on confidence over Pakistan securing nuclear assets, and higher global crude oil prices played a catalytic role in a bullish close.”

Analyst Ali Najib at Topline Securities said equities witnessed a positive day on account of the US State Department’s positive statement regarding the country’s nuclear program and likely whitelisting in the upcoming FATF annual review. The official announcement is likely to arrive over the weekend.

The benchmark initially opened in a green zone, stayed in it throughout the day and eventually settled at 41,839 (+84 points; up 0.20 percent) for the day.

TRG, POL, SNGP, DAWH & FFC added 89 points, cumulatively. On the flip side, PSO, NESTLE and EPCL witnessed some profit-taking as they lost 25 points collectively.

The highest increase was recorded in shares of Sapphire, which rose by Rs45.40 to Rs1,059 per share, followed by Premium, which increased by Rs31.60 to Rs665 per share. A significant decline was noted in shares of Nestle Pakistan, which fell by Rs150 to Rs5,850 per share, followed by Sapphire FiberXD, which decreased by Rs91.02 to Rs1,158.36 per share.

Brokerage Arif Habib Ltd in a post market note said another range-bound session was witnessed at the PSX. “The market traded in the positive zone despite the lacklustre activity that was observed throughout the trading session due to political instability,” it said. “Investors' participation remained sluggish as volumes continued to fall, on the contrary, decent activity was recorded in the 3rd tier stocks.”

Sectors contributing to the performance included technology & communication (25.5 points), commercial banks (14.7 points), fertilizer (10.9 points), cement (10.0 points) and textile composite (9.2 points).

WorldCall Telecom remained the volume leader with 29.860 million shares that rose by 2 paisas to Rs1.57 per share. It was followed by F. Nat. Equities with 11.670 million shares that closed higher by Re1.0 to Rs6.00 per share.

Other stocks that recorded significant turnover included Sui North GasXD, Pak Refinery, Dewan Cement, TPL PropertiesXB, TRG Pak Ltd, Netsol Tech., Unity Foods Ltd and Hum Network. Lotte Chemical, Hascol Petrol, TRG Pak Ltd, Cnergyico PK, Netsol Tech., Hum Network.

Shares’ turnover in the future contracts increased to 49.742 million shares from 43.412 million shares.