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Friday March 29, 2024

Stocks rally as oversold market rebounds on foreign buying

By our correspondents
January 17, 2018

Stocks gained 1.4 percent on Tuesday rallying in line with regional markets as foreign investors lifted oversold sentiments amidst somewhat diffused political tension, dealers said.

They added that the stocks recovered as values became attractive after a three-day correction invited investor interest.

Analyst Mohammad Arbash at Elixir Securities said equities resumed gains after a three-day hiatus with benchmark KSE-100 shares index finishing up 1.4 percent.

“Market opened on a positive note and traded higher during the day as sentiments were boosted not only due to sizeable foreign inflow in the last couple of sessions, but also on domestic political front, since PAT chairman announced holding only a one-day protest against market expectations of a long sit-in,” the analyst added.

Pakistan Stock Exchange (PSX) KSE-100 shares index gained 1.4 percent or 592.19 points to close at 42,939.68 points. KSE-30 shares index gained 1.84 percent or 392.94 points to close at 21,753.28 points. As many as 357 scrips were active of which 227 advanced, 115 declined and 15 remained unchanged.

The ready market volumes stood at 160.883 million shares as compared with the turnover of 130.479 million shares a day earlier.

Analyst Ahsan Mehanti at Arif Habib Corp said stocks closed bullish led by blue-chip banking, oil and auto shares on strong valuations.

“Higher global equities, foreign inflows, upbeat cement sales and surging global crude oil prices played a catalytic role in record recovery at the PSX,” he said.

Major sectors namely financials, oils and steels along with select cements contributed to the day’s surge primarily on reported buying from local institutions. Habib Bank, up 3.9 percent topped the leader board followed by Lucky Cement, up 3.4 percent and Oil & Gas Development Company, up 2.2 percent, while dent came from Sui Northern Gas, down 3.7 percent on profit-taking.

Meanwhile, the national flag carrier Pakistan International Airlines (PIA), up 6.9 percent extended gains for the second day on optimism over its early privatisation.

Going forward, analysts see volatile trading with participants closely monitoring the political development and seeking clarification on the next course of action against government as cleric led PAT along with opposition parties hold protest.

Companies reflecting highest gains include Bhanero Textile, up Rs41.97 to close at Rs881.95/share, and Pakistan Tobacco, up Rs39.92 to close at Rs2,132.65/share.

Companies reflecting most losses include Nestle Pakistan, down Rs399.98 to close at Rs10,500.02/share, and Sanofi Aventis, down Rs52.85 to end at Rs1,342.01/share.

Highest volumes were witnessed in PIA with a turnover of 15.75 million shares. The scrip gained 37 paisas to close at Rs5.72/share. Faysal Bank was second with a turnover of 11.66 million shares. It gained 47 paisas to close at Rs24.19/share. Dewan Cement was third with a turnover of 8.47 million shares. It gained Rs1.02 to finish at Rs22.32/share.