Stocks hit new high; buoyed by World Bank growth forecast

The benchmark index closed at record high on Thursday after the World Bank revised its estimate for the country’s 2017 growth to 5.2 percent — music to Pakistan Stock Exchange’s ears.  “Stocks closed on a new high as investors cheered World Bank's growth rate revision to 5.2 percent for the FY17,” said Ahsan Mehanti, analyst at Arif Habib Corp.  

Bullish sentiments witnessed in stock across the board at early session followed by pressure in blue-chip scrips on concerns for foreign outflows, global equities selloff  and institutional profit-taking in the earnings season.

Hubco gained 4.1 percent after yesterday’s announcement of exercising its option to increase its shareholding in China power Hub power company to 47.5 percent and speculations in banking, auto and pharma stocks played a catalytic role in record close.

The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index gained 145.42 points or 0.29 percent to close at 49,517.02 points. The highest index of the day remained at 49,805.69 points while the lowest level of the day was recorded at 49,371.60 points. KSE-30 Index also rose 111.66 points to 26,949.89 points.

Turnover rose by 103 million shares to 563.16 million shares. However, trading value dropped to Rs23.70 billion from Rs24.98 billion while market capital expanded to Rs9.88 trillion against Rs9.86 trillion. Out of 437 companies’ active in the session, 218 closed in green, 202 in red while 17 remained unchanged.

Global Research, in its post market report, said the market opened on an exciting note, up 350 points soon after the opening bell. “During later trading hours, however, the market cooled down to close at 49,517 points (up 145 points) as investors booked profits made during the ongoing rally,” it said.

HUBC (up 4.0 percent) provided major support to the market with a contribution of 77 points towards the KSE-100 index.

SNGP (up 5.0 percent) closed at its upper limit likely because of expectations of turnaround in company earnings in the near future. “Going forward, we expect the market to test another psychological barrier of 50,000 level with major support from export incentives package,” said the Global Research report.

Highest increase was recorded in shares of Unilever Foods, which rose by Rs285 to Rs5,985/share, followed by Nestle Pakistan that increased by Rs162.95 to Rs9,300/share. Major decline was noted in shares of Rafhan Maize, which fell by Rs160 to Rs8,040/share, followed by Wyeth Pak Ltd that decreased by Rs68.86 to Rs4,960/share.

Significant turnover was recorded in stocks of Pervez Ahmed, TRG Pak Ltd, K-Electric Ltd, Japan Power, Engro Polymer, Pace (Pak) Ltd, Bank of Punjab, Pakistan International Airlines, Invest Bank and Sui Southern Gas Company Limited.

Pervez Ahmed remained the volume leader with 58.84 million shares with an increase of 35 paisas to Rs3.09/share. It was followed by TRG Pak Ltd with 34.13 million shares with an increase of Rs1.62 to Rs49.60/share.

Shares’ turnover in the future contracts dropped to 59.02 million shares from 59.94 million shares traded in the previous session.