Stocks close up, tracking regional markets

Stocks rose on Tuesday, tracking gains in regional markets on expected monetary tightening the US Federal Reserve later this week, with investors cautiously optimistic on quarterly results, dealers said.

They said the market witnessed renewed buying and investors took fresh positions on attractive values post corporate earnings announcements

The Pakistan Stock Exchange (PSX) benchmark KSE-100 shares gained 0.96 percent or 411.85 points to close at 43,253.26 points. KSE-30 shares index gained 1.04 percent or 228.62 points to close at 22,246.06 points. As many as 391 scrips were active of which 271 advanced, 108 declined and 12 remained unchanged.

Ahsan Mehanti at Arif Habib Corp said investor interest remained in selected scrips on renewed foreign inflows, UK announcement for support of GSP plus scheme and surging sales data in cement, oil, autos and fertiliser sectors, which led to positive close.

The ready market volumes stood at 218.57 million shares as compared with the turnover of 113.787 million shares a day earlier.

An analyst at Elixir Securities said equities closed higher with benchmark index surging over 400 points on improved activity. 

“Market took cues from higher regional markets and had a good run in the morning with index testing 43,200 resistance,” the analyst said. 

“Fertilisers carried momentum and led gains on buying interest both from foreigners and locals investors while textiles too caught attention on reports of UK supporting the continuity of GSP Plus Status for Pakistan.”

As the day progressed, wider market witnessed profit-taking, however buying in the index names in final ninety minutes of trading put benchmark index back on positive trajectory.

Meanwhile, DG Khan Cement (DGKC), up 0.5 percent, recovered from intra-day losses to close in green as investors cheered higher cash dividend declared by the company even though earnings came slightly lower than consensus.

Analysts see market to carry momentum and inch upwards with institutional flows helping, however a sustained progression above 43,500 level is imperative for the index to terminate recent bearish structure.

Companies reflecting highest gains include Rafhan Maize up Rs225.59 to close at Rs7,486.3/share and Nestle Pakistan up Rs103.33 to close at Rs13,000/share.

Companies reflecting most losses include Colgate Palmolive down Rs96.25 to close at Rs2,203.75/share and Sapphire Fiber down Rs62.79 to end at Rs1,193.22/share.

Highest volumes were witnessed in Dost Steel with a turnover of 27.287 million shares. The scrip gained 63 paisas to close at Rs13.22/share. Worldcall Telecom was second with a turnover of 16.411 million shares. It gained 49 paisas to close at Rs3.75/share. TRG Pakistan was third with a turnover of 15.458 million shares. It gained Rs1.09 to finish at Rs40.76/share.