Stocks rebound on buying in blue-chips

Stocks on Wednesday recovered some of the losses as investors cherry-picked the blue-chip shares with upbeat fertiliser sales data reviving the buying interest, dealers said.

Analyst Ali Raza at Elixir Securities said loses in the index heavy exploration and production sector pulled the benchmark Index lower at the beginning. “Market, thereafter, recovered and took the path of steady uptrend as savvy investors cherry-picked the names on no major selling pressure,” Raza said. 

The KSE 100-share Index of the Pakistan Stock Exchange gained 0.61 percent or 302.01 points to close at 49,754.72 points. KSE 30-share Index rose 0.43 percent or 115.38 points to end at 26,916.31 points.

As many as 398 shares were active; of which 217 increased, 163 decreased and 18 remained unchanged. The ready market’s volumes stood at 245.065 million as compared to 237.057 million shares a day earlier.

Analyst Ahsan Mehanti at Arif Habib Corp said stocks closed higher, led by fertiliser and engineering sectors on strong earnings outlook. Upbeat data on DAP fertiliser and petroleum sales and strengthening rupee stimulated the buying interest. Fauji Fertilizer Bin Qasim closed at the upper price limit in early hours on local interest on an expected hike in DAP prices.

Meanwhile, International Steels surged 4.1 percent that underwent correction lately came in limelight in the final hours of trading. On the flip side, Hub Power was down 0.6 percent on profit-taking.

“Unless institutional activity strongly picks up in the coming days, we continue to see a range-bound market with participants awaiting clarity on two key fronts: Panama case verdict and margin-based leverage system,” said an analyst.

Companies, reflecting highest gains, included Bata Pakistan, up Rs205 to end at Rs4,305/share and Nestle Pakistan that rose Rs200 to close at Rs9,300/share.

Companies, with highest losses, included Wyeth Pakistan, down Rs147.01 to close at Rs2,793.37/share and Sanofi Aventis that fell Rs120.93 to end at Rs2,297.80/share.

Highest volumes were witnessed in Lotte Chemical with a turnover of 28.33 million shares.

The share inched down 49 paisa to end at Rs11.32/share.

Aisha Steel Mill was the second with a turnover of 15.385 million shares. It fell five paisas to close at Rs23.27/share. Sui Southern Gas Company was the third with a turnover of 15.15 million shares. It gained Rs1.48 to finish at Rs45.21/share.