Stocks post modest recovery on oil buying

Stocks managed to recover some of the losses on Tuesday as investors took fresh positions in oil shares on rising international crude prices, dealers said.

Analyst Ahsan Mehanti at Arif Habib Limited said stocks recovered following the late session support in oil, cement and banking scrips on strong valuations. “Consolidation in the future contracts rollover week invited mid-session pressure,” Mehanti said. “However, institutional interest remained in oil stocks on surging global crude prices.”

The KSE 100-share Index of the Pakistan Stock Exchange (PSX) gained 0.18 percent or 85.97 points to close at 49,015.09 points. KSE 30-share Index inched up 0.36 percent or 95.95 points to end at 26,512.87 points. As many as 418 scrips were active; of which 162 rose, 238 fell and 18 remained unchanged.

The ready market volumes stood at 343.120 million as compared to 344.287 million shares a day earlier. Analyst Abrar Juma at Global Research said the market witnessed another volatile session and hovered between the red and black zones throughout the day.

“The KSE 100 index started on a bearish note following Monday’s selling as it fell 273 points soon after the opening bell,” Juma said. “Much of the selling pressure was witnessed in second-tier stocks, while blue-chips managed to hold their grounds.”

Dealers said though the index remained below 49,000 points during much of the time, yet bargain hunters emerged near the end of the day and they caused the index to recover and close above that level.

Oil and gas sector benefitted from recovering oil prices. Oil and Gas Development was up 1.40 percent, Pakistan Oilfields rose 1.50 percent and Pakistan Petroleum inched up 0.33 percent. They contributed 48 points to the index.

Other top gainers were TRG, which was up 4.78 percent. HUBCO increased 1.11 percent and UBL rose 0.73 percent. In contrast, Sui Northern was down 4.93 percent after the stock was expected to succumb to profit-taking after its recent rally.

With the result season almost concluded, analysts expect the market to remain volatile in view of the Panama hearings.                                                                                                       Companies, reflecting highest gains, included Wyeth Pakistan, up Rs81.17 to end at Rs4,229/share and Ferozsons Laboratories that rose Rs25.70 to close at Rs566.59/share.

Companies, with highest losses, included Rafhan Maize, down Rs138.33 to close at Rs7,850/share and Colgate Palmolive that fell Rs100 to end at Rs1,900/share.

Highest volumes were witnessed in Power Cement with a turnover of 36.298 million shares. The scrip shed Rs1.04 to close at Rs20.65/share. Aisha Steel Mill recorded a turnover of 29.404 million shares. It rose Rs1.11 to finish at Rs27.06/share.