Stocks pare some losses as investors cherry pick value plays

Equities bounced back on Wednesday to close in black after three consecutive negative sessions that pulled the benchmark KSE-100 Index lower by near 4.6 percent, dealers said.

Analyst Maaz Mulla at JS Global Capital said market witnessed a recovery after Tuesday’s bloodbath. “The continuity of political uncertainty has resulted in investors switching from growth stocks to value plays.”

The KSE 100-share Index of Pakistan Stock Exchange gained 0.65 percent or 287.51 points to close at 44,186.96 points.

KSE-30 shares rose 0.68 percent or 153.60 points to end at 22,774.14 points. As many as 377 shares were active; of which 217 increased, 145 decreased and 15 remained unchanged.

The ready market volume stood at 187.249 million shares as compared to 191.366 million shares a day earlier. Elixir Securities, in a report, said market pared some of the recent losses as the select index names inched up on institutions-led cherry picking. 

“Politics continued to be a distraction and kept most of the investors at bay,” added the brokerage. Despite increase in local oil prices, Shell Pakistan closed flat as its earnings of Rs21.85/share for 1H2017 were not up to the investor expectations.

Bank heavyweights MCB edging up 0.96 percent, Habib Bank rising 0.81 percent, United Bank increasing 0.18 percent and National Bank gaining 1.45 percent closed in black to cumulatively contribute 53 points to the benchmark Index.

Aisha Steel edging was up 1.90 percent, International Steel surged 4.13 percent and International Industries rose 4.98 percent as investors picked stocks on attractive values. Flows will guide direction in days ahead; however value buyers will attempt to take advantage of the ongoing weakness despite political noise.

Companies reflecting highest gains included Phillip Morris Pakistan up Rs66.06 to close at Rs2,624.11/share and HinoPak Motor that rose Rs52.49 to end at Rs1,280/share.

Companies with most losses included Sanofi Aventis down Rs89.28 to end at Rs1,833.05/share and Rafhan Maize that fell Rs80 to close at Rs6,950/share.

Highest volumes were witnessed in Azgard Nine with a turnover of 17.7 million shares. Its share value gained 28 paisas to close at Rs15.87/share. Aisha Steel Mill was the second with a turnover of 11.64 million shares. It rose 41 paisas to end at Rs22.01/share.TRG Pakistan was the third with a turnover of 8.557 million shares. It edged up 90 paisas to finish at Rs43.53/share.