Stocks recover from four-day slide on rupee, oil strength

Stocks edged up on Wednesday, snapping a four-day losing streak, as investors bet on positive earnings results amid higher oil prices and a stronger rupee, dealers said.

The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index rose 137.44 points or 0.22 percent to close at 61,979.18 points after touching a high of 62,600.12 points earlier in the session. The KSE-30 index also gained 80.94 points or 0.39 percent to close at 20,954.33 points.

"Stocks showed recovery led by selected scrips across the board amid higher global crude oil prices, rupee gains and speculations in the earnings season," said Ahsan Mehanti, an analyst at Arif Habib Corp.

He said the government's resolve to settle power sector circular debt and the central bank's decision to keep the policy rate unchanged at 22 percent on Jan. 29 despite high inflation also played a catalytic role in the positive close.

Traded shares decreased by 160 million shares to 276.464 million shares from 436.120 million shares. The trading value dropped to Rs9.271 billion from Rs15.286 billion. Market capital narrowed to Rs9.073 trillion against Rs9.077 trillion. Out of 349 companies active in the session, 165 closed in green, 151 in red and 33 remained unchanged.

Analyst Nabeel Haroon at Topline Securities said the benchmark index largely traded in a positive zone during the trading session as it gained to make an intraday high of 758 points. "However, sceptical investors preferred to book their intraday gain."

Investors’ participation declined during the trading session which can be attributed to their preference to remain on the sidelines before the upcoming election on February 8.

The highest increase was recorded in Unilever Pakistan Foods Limited, which rose by Rs1,551.83 to Rs22,364.33 per share, followed by Sazgar Engineering Works Limited, which increased by Rs13.48 to Rs211.19 per share.

A significant decline was noted in Nestle Pakistan Limited, which fell by Rs100 to Rs8,200 per share, followed by Colgate-Palmolive (Pakistan) Limited, which closed lower by Rs40.33 to Rs1,404 per share.

Brokerage Arif Habib Ltd said stoocks experienced some upside relief after four consecutive days of declines, but gains remained limited below 63,000 points.

It said the advance-decline ratio stood at 36:53, with Engro Corp, Bank Alfalah Ltd and United Bank Ltd contributing the most to index gains, while Colgate-Palmolive, Mari Petroleum Co Ltd and Service Industries Ltd were the biggest downside contributors.

Looking ahead, it said price action was anticipated to exhibit a bearish bias heading into the elections, with the next support at 59,000 points and resistance at 64,000 points.

ENGRO gained 1.36 percent), BAFL 3.1 percent, and UBL 1.1 percent, while COLG fell 2.79 percent, MARI 1.41 percent), and SRVI 3.13 percent.

K-Electric Ltd. remained the volume leader with 36.273 million shares which closed lower by 11 paisas to Rs4.54 per share. B.O. Punjab followed it with 20.853 million shares, which closed higher by 40 paisas to Rs6.20 per share.

Other significant turnover stocks included Hascol Petrol, WorldCall Telecom, Soneri Bank Ltd, PIAC (A), Cnergyico PK, Kohinoor Spining, Pak Int. Bulk and Air Link Commun.

A total of 328 companies recorded future shares, of which 180 increased, 138 decreased and 10 remained unchanged.