Stocks gain ahead of MSCI-EM Index inclusion

Pakistan Stock Exchange (PSX) relegated prevailing politics, as investors quickly realised that the force is stronger given MSCI-EM Index inclusion is around the corner, dealers said.

Ali Raza in a report issued by Elixir Securities said equities closed on Friday with handsome gains, as aggressive institutional buying over MSCI Euphoria propelled the benchmark KSE-100 Index to retest the coveted 50K level.

“Despite a weak start in the morning due to index heavy oils opening gap down and briefly stalling the momentum after losses in global crude, wider market got back on positive track helped by heavy institutional buying, primarily in MSCI names.”

The KSE-100 shares index gained 1.15 percent, or 567.48 points, to close at 49,851.13 points. KSE-30 shares index gained 1.44 percent, or 376.32 points, to end at 26,450.97 points.

As many as 390 scrips were active of which 217 advanced, 152 declined and 21 remained unchanged.

The ready market volumes stood at 308.119 million shares as compared to 287.866 million shares a day earlier. Arham Ghous in a report issued by JS Global said local bourse remained largely in the green zone during the last trading day of the week.

“E&P sector showed downward trajectory as the sector lost value to close 0.6 percent lower than its previous day close. Decline in E&P sector can be attributed to crude oil prices as they fell to six months low.”

Pakistan Oilfields Limited (POL) down 1.22 percent and Pakistan Petroleum Limited (PPL) down 1.99 percent were the major laggards of the aforementioned sector.

Volumes at day's close touched the 300 million mark with United Bank Limited (UBL) 4.6 percent, Lucky Cements (LUCK) up 3.9 percent, Habib Bank (HBL) up 2.2 percent, MCB Bank (MCB) up 4.1 percent and Engro Corp (ENGRO) up 2.6 percent becoming the major gainers and cumulatively contributing over 70 percent points to index gains.

Going forward, market is expected to remain bullish next week with index names inching upwards, retail plays seeing better participation and benchmark index retesting and possibly surpassing the previous all-time highs.

Companies reflecting highest gains include Unilever Foods up by Rs299 to end at Rs6699/share and Sapphire Textile up Rs89 to end at Rs1886/share.

Companies reflecting highest losses include Rafhan Maize down Rs149.98 to Rs7150/share and Bata Pakistan down Rs100 to end at Rs4000/share.

Highest volumes were witnessed in Engro Polymer with a turnover of 37.524 million shares. The scrip gained 57 paisas to close at Rs30.93/share.

TRG Pakistan was second with a turnover of 17.286 million shares. It gained 51 paisas to end at Rs55.91/share. K-Electric Limited was third with a turnover of 14.607 million shares. It shed 02 paisas to finish at Rs8.01/share.