Stocks tick up; oil gains in thin volume

Stocks closed marginally up on Wednesday amid thin turnover as investors opted for a cautious value buying ahead of quarterly result announcements, dealers said.

Ahsan Mehanti at Arif Habib Limited said bullish close was witnessed in the quarter-end earnings announcement season led by oil and fertilisers scrips. “Likely resolution of circular debt, rising global crude prices and upbeat data on exports for March 2017 played a catalytic role in bullish close.”

The Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index gained 0.43 percent or 207.19 points to close at 48,457.26 points.

KSE-30 shares index gained 0.46 points or 118 points to end at 25,802.57 points. As many as 396 scrips were active of which 223 advanced, 152 declined and 21 remained unchanged.

The ready market volumes stood at 217.818 million as compared to 146.969 million shares a day earlier. Dealers said trade remained higher on strong earnings in leveraged sectors, upbeat auto sales data and easing political noise.

Nabeel Haroon at JS Global said positivity was witnessed in the market, while volumes also slightly improved. “E&P sector continued its bullish momentum as sector extended its gain,” Haroon said. “Support to crude oil price came from the news that Russia intends to start consultations with its oil producers regarding the possibility of extending its output cut deal with OPEC.”

Pakistan oilfields (up 1.36 percent) and Mari Petroleum (up 2.86 percent) were major index movers of the E&P sector. Mixed activity was seen in cements and financials. Some excitement was also seen in autos and chemicals where former came in limelight on better sales numbers.

Moving forward, lackluster trade will continue in the near-term and investors would act cautiously amid anxiety over Panama verdict. However result season is expected to generate interest and channel fresh liquidity into market in the coming days. 

Dealers reiterate their cautious stance as volumes continue to stay low amid political uncertainty. Companies reflecting highest gains include Phillip Morris Pakistan up by Rs116.99 to end at Rs2,600/share and Unilever Foods up Rs100 to end at Rs6200/share.

Companies reflecting highest losses include Rafhan Maize down Rs150 to Rs7,050/share and Colgate Palmolive down Rs25 to end at Rs2,050/share.

Highest volumes were witnessed in Aisha Steel Mill with a turnover of 23.600 million shares. The scrip gained Rs1.02 to close at Rs25.34/share. TRG Pakistan was second with a turnover of 17.044 million shares.

It gained 91 paisas to end at Rs52.54/share. Engro Polymer was third with a turnover of 12.929 million shares. It gained 55 paisas to finish at Rs26.54/share.