Stocks close up 1.06pc as investors eye robust results

Stocks surged over one percent on the first day of trading after a long holidays on Monday as institutional buyers caught pace to grab blue-chip shares, dealers said.

Analyst Ahsan Mehanti at Arif Habib Corp said foreign inflows, the bourse’s upgrade to the Morgan Stanley Capital International’s emerging market index and expected good results fueled bullish sentiments.

The Pakistan Stock Exchange's (PSX) benchmark 100-share Index ended up 1.06 percent, or 401.20 points, to 38,367.96. The highest index of the day remained at 38,427.78 points, while the lowest level of the day was recorded at 37,814.29 points.  KSE 30-share Index increased 1.33 percent, or 289.38 points, to 22,096.46 points.

Turnover rose 49 million shares to 159.51 million shares. Trading value increased to Rs12.47 billion from Rs7.06 billion and market capital inched up to Rs7.70 trillion from Rs7.63 trillion. Of a total of 323 companies, 202 ended up, 97 closed down and 24 remained unchanged.

“Stocks were dull in early trade with index heavy exploration and production sector pulling benchmark index briefly in negative as investors tracked eight percent dip in global crude over holidays,” analyst Ali Raza at Eixir Securities said. “Activity in the wider market, however, picked up as the day progressed with investors primarily institutions both local and foreign cherry-picking index names.” 

Key stocks in cements, such as Lucky Cements (up 3.5 percent), DG Khan Cement (2.3 percent), Maple Leaf Cement (1.5 percent) traded at their all-time highs and contributed most to day's gain as investors cheered better than expected June dispatches.

“Exploration and production sector also recovered near mid-day after Pakistan Oilfields (up one percent) notified exchange of hydrocarbon discovery which according to our estimates will have an annualised impact Rs3.25 per share to the company's bottom-line,” Raza said.    Engro Foods (down 4.7 percent) added to recent losses after its stake-sale deal at a hefty discount to market.  Locals will continue to track flows and developments on domestic political front.

Highest increase was recorded in shares of Rafhan Maize by Rs254.99 to Rs7,824.99/share followed by Ferozsons (Lab) that rose Rs39.72 to Rs1,084.15/share. Major decrease was noted in shares of Exide (Pak) by Rs9 to Rs785/share followed by Premier Sugar that fell Rs7.55 to Rs153/share.

Significant turnover was recorded in stocks of Sui Northern Gas Pipeline Limited, K-Electric Ltd, Dewan Cement, Byco Petroleum, Engro Foods Limited, Engro Fertilizers, TRG Pak Ltd, Fauji Cement, Sui Southern Gas Company Limited and Pak Int. Bulk.

SNGPL remained the volume leader with 19.08 million shares with an increase of Rs1.83 to Rs39.85/share. It was followed by K-Electric with 11.12 million shares with an increase of two paisas to Rs8.09/share.

Shares’ turnover in the future contracts increased to 34.56 million shares from 24.16 million shares traded in the previous session.