Stocks end marginally up; blue-chips lend support

Stocks on Monday managed to close marginally up as buying in banking and energy shares lent some support to the Index affected by Panama-driven cautious trading.

Analyst Ali Raza at Elixir Securities said equities slightly closed up on the week’s first day after stocks witnessed volatile trading.  The select Index names of financial and exploration and production sectors helped the Index recover lost ground, but profit-taking in the final hour pared some gains.

The Pakistan Stock Exchange’s benchmark 100-share Index ended up 0.11 percent or 53.58 points to 47,942.95 points. The highest index of the day remained at 48,095.56 points, while the lowest level of the day was recorded at 47,731.84 points. KSE 30-share Index also increased 0.32 percent or 80.89 points to 25,499.10 points.

Turnover decreased 22 million shares to 130.69 million shares. Trading value rose to Rs7.63 billion from Rs7.28 billion, while market capital fell to Rs9.51 trillion from Rs9.52 trillion. Out of 359 companies active in the session, 131 closed up, 210 ended down while 18 remained unchanged.

“We are seeing volatility to persist as investors continue to await clarity on Panama case,” Raza said. “However, the results season, getting into full swing in the coming days, will likely bring investor’s focus back on fundamentals and may also help marginalise concerns over domestic politics.”

Major contribution to the day's gains came from Habib Bank Limited (up 1.0 percent), Oil and Gas Development Company (rising 1.5 percent) and United Bank Limited (increasing 1.3 percent). 

Exploration and production sector extended its gains as crude oil prices continued its upward trajectory to trade above $52.50/barrel. This surge stemmed from another shutdown at Libya’s largest oilfield and unrest following US airstrike on Syrian airbase.

Fauji Cement (down 1.5 percent) was among the top three stocks, which dented the Index on relatively dull volumes. Analyst Nabeel Haroon at JS Research said limited participation by investors in the market might be attributed to ongoing concerns over the political scenario. 

“Moving forward, we recommend investors to stay cautious in the market as volumes are expected to stay low amid political uncertainty,” Haroon said. Highest increase was recorded in shares of Sapphire Fiber by Rs47 to Rs1,129.50/share, followed by Bhanero Textile that rose Rs38.26 to Rs803.52/share. 

Major decrease was registered in shares of Bata (Pak) by Rs217.70 to Rs4,136.30/share, followed by Philip Morris Pak that fell Rs137 to Rs2,613/share. Significant turnover was recorded in stocks of Azgard Nine, Dewan Cement, TRG Pak Ltd, Pak Gen Insurance, Pak Elektron, Aisha Steel Mill, Engro Polymer, Sui Southern Gas Company Limited, K-Electric Ltd and Bank of Punjab.

Azgard Nine remained the volume leader with 15.83 million shares with an increase of 37 paisas to Rs13.05/share. It was followed by Dewan Cement with 10.77 million shares with a drop of 10 paisas to Rs21.89/share.  Turnover in the future contracts increased to 29.61 million from 27.12 million traded in the previous session.