Pakistan stocks extend gains; cements, oils support 

Stocks continued their bullish trend on Monday as investors took fresh positions in blue-chips ahead of the upcoming annual market reclassification by the Morgan Stanley Capital International (MSCI), dealers said.

The benchmark 100-share Index of Pakistan Stock Exchange (PSX) closed up 261.30 points, or 0.73 percent, to 36,234.99 points. The highest index of the day remained at 36,302.34 points and the lowest level was recorded at 35,973.69 points.

KSE 30-share Index also increased 207.17 points, or 0.98 percent, to 21,302.34 points.

Turnover, however, decreased 13 million shares to 273.02 million shares. Trading value fell to Rs12.84 billion from Rs14.33 billion and market capital increased to Rs7.44 trillion as against Rs7.40 trillion. Of a total of 355 companies, 194 closed up, 141 ended down and 20 remained unchanged. Analyst Ahsan Mehanti at Arif Habib Corp said stocks closed higher, led by cements and oils amid bull-run in global equities and crude prices. Intraday pressure was in the overbought textile, fertiliser and auto stocks. “Foreign inflows and MSCI reclassification to EM status hopes played a catalyst role in bullish close at PSX,” Mehanti said.

On June 14, MSCI will discuss upgrading PSX’s classification to an emerging market. 

A report of Global Research said the local bourse opened on a positive note to reach a day high of 36,305 points while witnessing a consistent day to close at 36,234 points. The daily turnover clocked in at 148 million shares with construction (29 million shares) and oil and gas (15 million shares) topping the chart.

The news pertaining to record long position in oil by the hedge funds around the world led to recovery in U.S. crude (up 2.08 percent) and Brent (up 1.56 percent), which helped exploration and production sector gain 47 points for the index.

Meanwhile, MSCI driven expectations led the index heavyweight United Bank Limited up 3.35 percent, MCB Bank Limited rising 1.71 percent and Oil and Gas Development Company increasing 1.77 percent, cumulatively adding 115 points.

Highest increase was recorded in ICI Pakistan. Its share value rose Rs22.25 to Rs467.43/share, followed by Ferozsons (Lab) that increased Rs18.89 to Rs895.26/share. Major decrease was registered in Rafhan Maize SPOT. Its stock price fell Rs450 to Rs8,550/share, followed by Nestle Pak XD that decreased Rs100 to Rs7,200/share.

Significant turnover was recorded in stocks of WorldCall Telecom, Sui Northern Gas Pipeline Limited (SNGPL), Dewan Cement, Pak Int Bulk, Byco Petroleum, Bank of Punjab, K-Electric Ltd, Dewan Motors, TRG Pak Ltd and Sui Southern Gas Company Limited. WorldCall Telecom remained the volume leader with 26.06 million shares with an increase of 15 paisas to Rs1.89/share. It was followed by SNGPL with 24.32 million shares with an increase of Rs1.45 to Rs36.04/share. Shares’ turnover in the future contracts fell to 43.75 million shares from 56.65 million shares traded in the previous session.