Stocks gain for sixth straight session; blue-chip shares rally

Stock rose over half-a-percent in its sixth consecutive session of gains on Thursday on hopes of better growth after the government appointed a full time finance advisor to look after the economy, dealers said.

Zain-ul Abedin at Elixir Securities said equities carried momentum and closed positive for the sixth consecutive session.

“Market exhibited choppy behaviour until mid-day with benchmark index succumbing to mild intra-day profit taking. Later on, institutional buying in blue-chips across financials and cements pushed the index higher,” analyst Zain-ul Abedin at Elixir Securities said

Pakistan Stock Exchange’s (PSX) benchmark KSE-100 shares index gained 0.56 percent or 224.58 points to close at 40,371.31 points. KSE-30 shares index gained 0.48 percent or 96.86 points to close at 20,212.63 points. As many as 355 scrips were active of which 202 advanced, 135 declined and 18 remained unchanged.

The ready market volumes stood at 239.587 million shares as compared with the turnover of 199.34 million shares a day earlier.

Adnan Sami at Topline Securities said equities soared as the market rejoiced the appointment of Miftah Ismail as federal minister and advisor to the Prime Minister on finance, revenue and economic affairs.

“Chatter of year-end window dressing also did the rounds,” he added.

Cement stocks continued their upward progression with Lucky Cement (LUCK), up 3.5 percent, DG Khan Cement (DGKC), up 2.8 percent contributing positive points to KSE100 index, while small caps Pioneer Cements (PIOC), up 5.0 percent, Cherat Cement (CHCC), up 4.4 percent and Dewan Cement (DCL), up 6.3 percent also had a field day and settled at or near their upper price limits.

Meanwhile, the management of Engro Polymer (EPCL), down 3.3 percent, in a material notification, approved investment of about Rs10.3 billion for addition of new PVC plant and VCM Plant debottlenecking. The announcement of a higher percentage of capital expenditure through right shares issuance (52 percent) dented investors’ sentiments and dragged down the stock.

Going forward, analysts expect market to trade volatile with likely window dressing ahead of year-end.

Companies reflecting highest gains include Sanofi Aventis, up Rs58.07 to close at Rs1,219.6/share, and Wyeth Pakistan, up Rs37.45 to close at Rs1,227.25/share.

Companies reflecting most losses include Bata Pakistan, down Rs115.67 to close at Rs2,259.33/share, and Abbot Laboratories, down Rs34.95 to end at Rs687.5/share.

Highest volumes were witnessed in Worldcall Telecom with a turnover of 55.081 million shares. The scrip gained one paisa to close at Rs2.98/share. Dost Steels Limited was second with a turnover of 18.952 million shares.

It shed 44 paisas to close at Rs10.3/share. TRG Pakistan was third with a turnover of 12.413 million shares. It gained 32 paisas to finish at Rs31.14/share.