Stocks snap six-day losing streak on upbeat current account data

Stocks closed in green on Tuesday, rebounding from a six-day losing streak as investors cheered a current account surplus of $255 million in May’23, traders said.

The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index closed higher by 31.81 points or 0.08 percent to 40,653.03 points against 40,621.22 points recorded in the last session. The highest index of the day remained at 40,739.98 points while the lowest level of the day was recorded at 40,507.18 points.

Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks showed recovery amid upbeat economic data on $255 million current account surplus in May’23 and strong rupee recovery on likely rollover of Chinese deposits.”

KSE-30 index also increased by 46.30 points or 0.32 percent to 14,306.89 points compared with 14,260.59 points recorded in the last session.

Traded shares decreased by 55 million shares to 124.856 million shares from 179.780 million shares. The trading value decreased to Rs4.031 billion from Rs5.624 billion. Market capital narrowed to Rs6.262 trillion from Rs6.267 trillion. Out of 311 companies active in the session, 106 closed in green, 179 in red and 26 remained unchanged.

Analyst Ali Najib at Topline Securities said the arrival of a $255 million surplus on the current account front (May 23) anchored Pakistan equities and provided some support against yesterday’s (Monday’s) bearish momentum.

However, he added, the aforesaid support proved a temporary remedy as the market succumbed to selling pressure most likely by some residuals of Monday’s institutional selling, which compelled the benchmark index to lose some earlier gained ground and settled the day at 40,653 level.

OGDC, PPL, HUBC, SYS and BAHL contributed positively by adding 98 points. On the flip side, COLG, MTL and UBL had some profit-taking and lost 52 points, collectively.

The highest increase was recorded in Nestle Pakistan shares, which rose by Rs100 to Rs6,650 per share, followed by Bata (Pak), which increased by Rs99.57 to Rs1,835.57 per share. A significant decline was noted in Rafhan Maize, which fell by Rs149 to Rs8,350 per share, followed by Mehmood Tex., which decreased by Rs79.90 to Rs985.43 per share.

Brokerage Arif Habib Ltd said a range-bound session was recorded at the PSX. The market opened in green but traded in both directions due to the impending negotiation between the government and IMF for the 9th review of the Extended Fund Facility, it reported.

Investors chose to remain invested in the E&P sector which helped the market to close in the positive zone. “Overall market activity remained sideways owing to the economic situation of the country,” it said.

Volumes remained dull while the 3rd tier equities led the volume board. Sectors contributing to the performance included E&P’s (+61.2 points), OMC’s (+28.5 points), technology and communication (+21.6 points), power generation & distribution (+16.6 points) and inv. banks/inv. cos./securities cos. (+12.3 points).

K-Electric Ltd. remained the volume leader with 9.921 million shares which closed higher by one paisa to Rs1.59 per share. It was followed by WorldCall Telecom with 6.986 million shares, which closed higher by 2 paisas to Rs1.14 per share.

Other significant turnover stocks included Hascol Petrol, Cnergyico PK, Pak Petroleum, Sui North Gas, Oil & Gas Dev., The Organic Meat, Pak Int. Bulk and TRG Pak Ltd.

Shares’ turnover in the future contracts increased to 129.010 million shares from 81.772 million shares.