Stocks gain as investors cherry-pick value plays

Stocks on Monday managed to gain in a thinly-traded session as investors cherry-picked shares with attractive valuations, dealers said.

“The market seems deaf to the host of sector specific news triggers, with all ears out for the latest political development,” said Adnan Sami Sheikh, an analyst at Topline Securities. “At this rate, even earnings season may fail to entice market participants.”

The KSE 100-share Index of Pakistan Stock Exchange gained 0.52 percent or 234.82 points to close at 45,529.21 points. KSE 30-share Index was up 0.48 percent or 113.90 points to end at 23,753.49 points. As many as 335 shares were active; of which 213 increased, 106 decreased and 16 remained unchanged.

The ready market volume stood at 105.856 million shares as compared to 122.452 million shares a day earlier. Analyst Maaz Mulla at JS Global said market continued its previous day trend with low volume. 

“Positivity in the market came as the apex court concluded the hearing of the Panamagate case and reserved its judgment for a later date,” Mulla added. Elixir Securities, in a report, said equities surged with the benchmark KSE-100 Index settling above 45,500 points level albeit in a dull trading session. Stocks opened positive and witnessed range-bound trading as the day progressed with wider market trading in a narrow band of 300 points.

“Uncertainty on domestic politics was much to blame as it contributed to a lacklustre session with a very selective institutional participation as most locals refrained from participating aggressively amid looming verdict of Panama case,” added the brokerage. 

The Index names generated little interest, while retail-driven small caps led volumes. Key policy rate announcement by the State Bank of Pakistan (SBP) over the weekend had no impact on the market. SBP kept its benchmark interest rate unchanged at 5.75 percent for the next two months.  Investor interest was, however, seen in steel sector. International Steel was up 1.55 percent, International Industries rose 3.8 percent and Amreli Steel increased 2.1 percent. Cement and fertiliser sectors also remained in the limelight ahead of corporate results. Analysts expect institutional flows to mainly guide market direction going forward, while prevailing anxiety on domestic politics will keep activity of wider market in check.

Companies reflecting highest gains included Nestle Pakistan up Rs415 to close at Rs10,200/share and Bata Pakistan that rose Rs145 to end at Rs3,170/share.

Companies with most losses included Phillip Morris Pakistan down Rs145 to end at Rs2,755/share and Sapphire Textile that fell Rs33.95 to close at Rs1,945/share.

Highest volumes were witnessed in TRG Pakistan with a turnover of 22.728 million shares. Its stock value gained Rs1.28 to close at Rs39.91/share. Azgard Nine was the second with a turnover of 7.292 million shares. It was up Re1 to end at Rs12.97/share. Bank of Punjab was the third with a turnover of 5.908 million shares. It inched up 35 paisas to finish at Rs11.54/share.