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Thursday March 28, 2024

Stocks rebound 2.2 percent in oversold market

By our correspondents
August 24, 2017

Stocks snapped four-day losing streak on Wednesday as buying on attractive valuations and upbeat financials pulled the benchmark Index up more than two percent, traders said.

Analyst Ahsan Mehanti at Arif Habib Corp said stocks staged recovery, led by cement, auto and oil stocks, on strong valuations.  “Institutional interest remained on upbeat financial results and reports of government’s plan to issue $1 billion sukuk to cut current account deficit,” Mehanti said.

The Pakistan Stock Exchange’s benchmark KSE 100-share Index closed higher 2.21 percent or 927.63 points to 42,910.79 points. The highest index of the day remained at 42,949.77 points, while the lowest level of the day was recorded at 41,927.96 points. KSE 30-share Index also increased 2.26 percent or 489.82 points to end at 22,161 points.

Turnover, however, decreased 51 million shares to 166.77 million shares. Trading value fell to Rs9.35 billion from Rs12.15 billion, while market capital expanded to Rs8.93 trillion from Rs8.77 trillion in the last session. Of 396 companies active in the session, 314 closed up, 71 ended down, while 11 remained unchanged.

Surging textile exports, cement dispatches, a likely revision in oil marketing companies’ margins and higher global oil prices also improved sentiments. Elixir Securities, in a report, said equities snapped four-day losing streak and closed higher over 42,800-point level.

“Market opened positive and quickly edged up in early trade as Index names drew interest from local institutions on attractive valuations and a relative calm on political front,” the brokerage said. “With the benchmark KSE 100 Index finding support near 42,000, we see market to edge up further on improved volumes as smart money flowed in to take advantage.”

All major sectors, including the lagging cement sector bounced back, while mid- and small-cap plays also closed higher, albeit on relatively less volume on retail buying. Habib Bank Limited (up 3.2 percent) led the list of gainers and added 99 points to 100-share Index, while Engro Corp (rising 3.1 percent), Sui Northern Gas Pipelines Ltd (increasing 5 percent), Pakistan State Oil (soaring 3.8 percent) and Hub Power (jumping 2.5 percent) were also among the top five gainers.

Highest increase was recorded in Unilever Foods by Rs200 to close at Rs6,200/share, followed by Philip Morris Pak that rose Rs122.50 to end at Rs2,800/share. Major decrease was registered in Bata (Pak) by Rs145 to end at Rs2,800/share, followed by Service Industries Ltd that fell Rs58.68 to close at Rs1,114.93/share.

Significant turnover was recorded in TRG Pak Ltd, Azgard Nine, Aisha Steel Mill, Pak Elektron, Power Cement, Fauji Cement, Dewan Motors, K-Electric Ltd, Bank of Punjab and Dost Steels Ltd.

TRG Pak Ltd remained the volume leader with 14.29 million shares with an increase of Rs1.55 to close at Rs41.99/share. It was followed by Azgard Nine with 12.71 million shares with a rise of Rs99 paisas to end at Rs16.17/share. Turnover in the future contracts rose to 129.40 million shares from 116.53 million shares traded in the previous session.