Stocks erase losses as bargain hunters pounce on key sectors

Stock ended higher in a volatile trade on Thursday, recovering from early losses as investors snapped up bargains in oil, banking and fertilizer sectors, dealers said.

The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index gainexd 170.03 points or 0.26 percent to close at 65,450.19 points. The highest index of the day remained at 65,622.56 points while the lowest level was recorded at 64,437.70 points. The KSE-30 index also increased by 78.08 points or 0.36 percent to close at 21,867.53 point.

Dealers said profit-taking pushed the index below 65,000, but bulls fought back in the later part of the day and helped the index close in the green. Analyst Ahsan Mehanti at Arif Habib Corp, said stocks showed recovery led by oil, banking and fertilizer scrips on strong valuations. "The finance minister's affirmation on fiscal and external sector stability, rupee stability and ongoing M&A deals in telecom, banking and oil sectors played a catalytic role in the bullish close."

Traded shares decreased by 377 million shares to 981.194 billion shares from 1.358 million shares. The trading value decreased to Rs23.743 billion from Rs37.657 billion. Market capital rose to Rs9.414 trillion against Rs9.368 trillion. Out of 389 companies active in the session, 198 closed in green, 174 in red and 17 remained unchanged.

Analyst Naveed Nadeem at Topline Securities said the trading day for equities commenced with a downward trend, extending its decline to revisit the previous day's lows at around 64,400. "However, buyers stepped in and effectively maintained support at this level once again. The market index then traded within a specific range for the remainder of the session, concluding the session at 0.26 percent up."

During the trading hours, positive contributions from stocks in the fertilizer, OMC, and bank sectors, including PPL, FFC, OGDC, BOP, and MCB, collectively added 271 points. Conversely, stocks such as MEBL, UBL, and HUBC resulted in a combined loss of 112 points.

The day witnessed robust trading activity, with a total of 981 million shares exchanged on the stock exchange, amounting to a total value of Rs23.7 billion. KOSM led the volumes chart with the trading of over 160 million shares.

The highest increase was recorded in Unilever Pakistan Foods Limited, which rose by Rs175 to Rs22,275 per share, followed by Sapphire Fibres Limited, which increased by Rs85 to Rs1,784.50 per share.

A significant decline was noted in Rafhan Maize Products Company Limited, which fell by Rs350 to Rs10,000 per share, followed by Service Industries Limited, which closed lower by Rs23.28 to Rs624.72 per share.

Brokerage Arif Habib Ltd said key news flow remained highlighted that Telenor ASA agreed to sell its Pakistani operations to the PTCL (+8.33 percent) the country’s largest telecommunications provider in a deal valued at $490 million.

Kohinoor Spining remained the volume leader with 160.178 million shares which closed higher by 76 paisas to Rs5.40 per share. B.O. Punjab followed it with 89.773 million shares, which closed higher by 68 paisas to Rs6.97 per share.

Other significant turnover stocks included Hascol Petrol, WorldCall Telecom, K-Electric Ltd., Fauji Foods Ltd, Pak Int. Bulk, Pak Elektron, Pak Refinery and Telecard Limited. A total of 315 companies recorded future shares, of which 153 increased, 158 decreased and 4 remained unchanged.