Stocks extend gainson corporate earnings

Stocks on Tuesday extended gains as investors took fresh positions in industrial and retail plays chasing sector-specific triggers, particularly corporate earnings, dealers said.

Elixir Securities, in a report, said equities added to gains and closed higher. Wider market saw better participation, helped primarily by locals’ interest in select industrial and consumer plays, resulting in volumes on KSE All Shares Index crossing the 350 million mark.

“Though the market witnessed dull activity in morning owing to political noise and Monday’s terror attack in capital city of Punjab province, Index gradually inched up as the day progressed,” the brokerage added.

The KSE 100-share Index of Pakistan Stock Exchange gained 0.85 percent or 388.69 points to close at 45,917.90 points. KSE 30-share Index rose 0.85 percent or 202.64 points to end at 23,956.13 points. As many as 368 shares were active; of which 262 increased, 95 decreased and 11 remained unchanged.

The ready market volume stood at 223.579 million shares as compared to 105.856 million shares a day earlier. Analyst Maaz Mulla at JS Global said developments on the political front drove investor sentiments and now investors are awaiting Supreme Court’s decision on Panamagate case.

“The rollover week has limited the upside in some stocks and participation is also expected to remain low,” Mulla added. “However, the result season is expected to boost volumes in key sectors, such as power, cement and auto.”

Industrial and consumer plays, including Sui Northern Gas Pipelines (up 2.8 percent), International Steels (rising 4.9 percent), Engro Polymer (increasing 3.7 percent) and Pak Electron (surging 3.2 percent) led gains on buying interest from local institutions. Sideboards too had a field day as many retail favorites such as TRG (up 1.4 percent), Azgard Nine (rising 4.5 percent) and Amreli Steel (increasing 4.8 percent) closed higher and dominated the volume chart.

Honda Atlas Cars closed up 2.9 percent after a surprise payout and better quarterly earnings, while Pak Suzuki Motors ended down 0.6 percent on earnings below market expectations.

Analysts ruled out possibility of any sharp surge in the near-term as uncertainty on domestic politics is yet to subside. Companies, reflecting highest gains, included Phillip Morris Pakistan up Rs133 to close at Rs2,888/share and Jubilee Life Insurance that rose Rs37.92 to end at Rs844.25/share.

Companies, with most losses, included Khyber Tobacco down Rs41.99 to end at Rs798/share and Wyeth Pakistan that fell Rs22.62 to close at Rs2,461.24/share.  

Highest volumes were witnessed in TRG Pakistan with a turnover of 16.464 million shares. Its stock value gained 54 paisas to close at Rs40.45/share. Azgard Nine was the second with a turnover of 13.942 million shares. Its share value rose 58 paisas to end at Rs13.55/share. Engro Polymer was the third with a turnover of 13.906 million shares. Its stock price was up Rs1.34 to finish at Rs37.79/share.