Stocks gain; blue-chip shares lift benchmark index

Stocks on Friday recovered much of the previous day losses as investors bought attractive blue-chip shares after geopolitical tensions subsided, traders said.

“Stocks showed recovery amid subdued noise over geopolitical tensions,” analyst Ahsan Mehanti at Arif Habib Corp said. “Mid-session pressure remained on concerns over UN body’s report that indicated economic and exchange rate risks.”

Mehanti said receipt of $2.5 billion in Eurobond and sukuk, reports on surging fertilisers, auto and cement sales in November 2017 and rising local cement prices helped bullish close.

Pakistan Stock Exchange’s (PSX) benchmark KSE-100 shares index gained 0.76 percent or 295.34 points to close at 39,080 points.

Intraday high was 39,337.32, while the lowest level of the day was 38,433.81 points.

KSE-30 shares index also rose 164.74 points or 0.85 percent to 19,490.71 points against 19,325.97 points.

Turnover increased by 14 million shares to 149.52 million shares from 163.26 million shares.

Trading value rose to Rs7.33 billion from Rs6.23 billion, while market capital increased to Rs8.32 trillion from Rs8.25 trillion a day earlier.

Out of 364 active companies in the session, 160 closed in green, 185 in red while 19 remained unchanged.

“Market closed positive but the index traded in a very short-band, however (benchmark) index approached a technical support zone,” BIPL Securities said in its post market note.

“The current formation on daily charts indicates that the index could face resistance near 40,100 points.”

However, a break above the mentioned resistance level could add further gains towards 40,500 points, the report said.

Highest increase was recorded in shares of Nestle Pakistan, up Rs575

to Rs12,075/share, followed by Colgate Palmolive, up Rs105 to Rs2,400/share.

Major decline was noted in shares of Rafhan Maize, down Rs288.89

to Rs6,700/share, followed by Sanofi-Aventis, down Rs53.79 to Rs1,328.94/share.

Significant turnover was recorded in stocks of WorldCall Telecom, TRG Pak Ltd, Sui Southern Gas, Sui Northern Gas Pipelines, Pak Elektron, Azgard Nine, K-Electric Ltd, Japan Power, Dewan Motors and Bank of Punjab.

WorldCall Telecom remained the volume leader with 16.54 million shares traded. It gained 13 paisas to finish at Rs3.13/share. It was followed by TRG Pak Ltd with 10.70 million shares. It shed Rs1.70 to finish at Rs33.83 per share. Turnover in the future contracts increased to 47.82 million shares from 39.40 million shares traded in the previous session.