Stocks up 1.24pc as investors bet on MSCI constituents

Bulls roared back in the market with the benchmark KSE 100-share Index gaining more than one percent as investors bet on the shares included in the emerging markets index of Morgan Stanley Capital International (MSCI), dealers said.

Analyst Ali Raza at Elixir Securities said after equities bounced back after witnessing profit-taking most of the last week with notable names across the major sectors making gains albeit on thin volumes.  “We see increased volatility as MSCI transition day (June 1) comes closer, while news over budget would guide select shares in days ahead,” Raza said.

The KSE 100-share Index of Pakistan Stock Exchange closed higher 1.24 percent or 631.48 points to close at 51,373.51 points. The highest index of the day remained at 51,447.45 points, while the lowest level of the day was recorded at 50,742.03 points. KSE 30-share Index also rose 1.69 percent or 451.80 points to end at 27,239.13 points.

Turnover, however, decreased 105 million shares to 240.19 million shares. Trading value slightly increased to Rs12.57 billion from Rs12.48 billion, while market capital expanded to Rs10.19 trillion from Rs10.09 trillion. Of 394 companies active in the session, 239 closed up, 146 ended down while nine remained unchanged.

Index heavy oil securities lent the initial support as investors tracked higher global crude prices, while index names, mainly led by MSCI EM (emerging markets) constituents, followed suit and pushed the benchmark KSE 100 Index to retest 51,000 and close above 51,350.

“Notably, volumes on the day were lowest since 2nd May with small and mid caps primarily leading as most participants awaited clarity on budgetary announcements, while ongoing rollover week further pushed investors on the sidelines,” Raza said.  

Analysts said the State Bank of Pakistan’s maintaining the key interest rate at 5.75 percent over the weekend had no impact on the market. Analyst Nabeel Haroon at JS Research said major positive contribution came from the oil sector on the back of rising oil prices on global expectations of output cuts. POL was up 4.24 percent, OGDC rose 3.28 percent and PPL gained 2.55 percent. Banking heavyweights experienced a stock price hike as well, including UBL (up 3.92 percent), HBL (increasing 2.96 percent) and MCB (inching up 0.89 percent). They cumulatively contributed 225 points to the index.  

Highest increase was recorded in Wyeth Pak Ltd XD. Its share price rose Rs115.15 to close at Rs2,418.15/share, followed by Exide (Pak) that was up Rs47.61 to end at Rs999.96/share. Major decrease was in Hinopak Motor.

Its stock value fell Rs18.44 to end at Rs1,580/share, followed by Jubilee Life Insurance that was down Rs14.45 to close at Rs710/share. Significant turnover was recorded in stocks of Silk Bank Ltd, Pervez Ahmed, WorldCall Telecom, Dewan Farooque Spinning, Dewan Motors, Azgard Nine, Pace (Pak) Ltd, Chakwal Spinning, Kohinoor Spinning and Quice Food.

Silk Bank Ltd remained the volume leader with 16.75 million shares with a drop of five paisas to close at Rs1.86/share. It was followed by Pervez Ahmed with 13.10 million shares with an increase of 19 paisas to end at Rs2.77/share. Turnover in the future contracts increased to 64.13 million shares from 24.10 million shares traded in the previous session.