Stocks seesaw between losses and gains on S&P, politics

Stocks flitted between negative and positive turf on Tuesday as the investors took profits from a surge in shares prices after the S&P assigned better ‘B’ long-term rating to the planned dollar-denominated sukuk, dealers said.
“Some concerns about economy were allayed as the government floated timeline of road shows for issuance of Eurobond/Sukuk, while S&P also gave “B” rating for Pakistan’s proposed foreign debt issuance, which is better than rating of “B-” for previous issues,” Topline Securities in it post market note said.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 shares index gained 0.58 percent or 231.9 points to close at 40,548.83 points. KSE-30 shares index gained 0.69 percent or 140.1 points to close at 20,545.95 points. As many as 334 scrips were active of which 157 advanced, 154 declined and 23 remained unchanged.
The ready market volumes stood at 101.79 million shares as compared with the turnover of 94.109 million shares a day earlier.
The index saw promising start to the day, and some profit taking was seen by mid day due to reports that accountability courts rejected finance minister’s request seeking exemption from court appearances while also ordering start of proceedings to declare him a fugitive. However, day’s lows re-instilled positive momentum and market recovered, managing to close near session highs.
Ahsan Mehanti at Arif Habib Corp said stocks closed bullish amid speculations in the post earnings season rally at the PSX on strong earnings outlook. “Higher global crude prices, upbeat financial results in selected oil, banking and auto scrips played a catalyst role in higher close despite mid-session pressure on MSCI downgrades and $5.01 billion current account deficit for July-October 2017.”
MCB Bank (up 2.3 percent), Oil & Gas Development Company (up 1.7 percent), and Pakistan Petroleum (up 1.1 percent) remained on the investors radar while Pakistan State Oil (down 1.6 percent), Kot Addu Power (down 0.5 percent), Nishat Chunian Power (5.0 percent) and Nishat Power (down 5.0 percent) witnessed profit taking.
Power sector held back as investors were concerned over news of shutdown of furnace oil based power plants. Companies reflecting highest gains include Pakistan Tobacco up Rs72.26 to close at Rs1,518.69/share and Hinopak Motor up Rs29.70 to close at Rs1,046.56/share.
Companies reflecting most losses include Khyber Tobacco down Rs59 to close at Rs1,355/share and Service Industries down Rs37.22 to end at Rs802.78/share.
Highest volumes were witnessed in Unity Foods (Rights) with a turnover of 12.98 million shares. The scrip gained Rs1.0 to close at Rs4.76/share. TRG Pakistan was second with a turnover of 7.33 million shares. It gained 65 paisas to close at Rs35.89/share. Pak Elektron was third with a turnover of 4.9 million shares. It gained Rs1.37 to finish at Rs56.27/share. 