Stocks gain as political tensions ease

Stocks closed slightly up on Thursday despite the political drama in Lahore which kept market sentiments volatile leading from aggressive buying to profit taking, and later to recovery, dealers said.

Analyst Zain-ul Abedin at Elixir Securities said equities closed green with the benchmark KSE-100 shares index settling above the 43,500 points level after a volatile trading session.

“Market opened gap up and climbed to 44,000 points psychological barrier after peaceful conclusion of overnight protest by the opposition parties,” he said.

However, announcement of a press conference by Pakistan Tehreek-e-Insaf chairman during market hours dented confidence and snapped early gains to enter in the negative zone.

Pakistan Stock Exchange (PSX) KSE-100 shares index gained 0.51 percent or 221.91 points to close at 43,580.88 points. KSE-30 shares index gained 0.55 percent or 121.91 points to close at 22,105.41 points. As many as 383 scrips were active of which 222 advanced, 152 declined and nine remained unchanged.

The ready market volumes stood at 268.457 million shares as compared with the turnover of 151.337 million shares a day earlier. Analyst Ahsan Mehanti at Arif Habib Corp said stocks closed bullish led by selected oil, banking and fertiliser scrips in the earnings seasons rally on strong valuations. Trade was led by second and third tier scrips ahead of major earnings announcements this week.

“Foreign inflows, subdued outcome of political protests and PM’s approval for amnesty scheme on offshore assets played a catalytic role in the bullish close,” the analyst added.

Among the key gainers, index heavy Engro Corporation, up 2.8 percent, Habib Bank (HBL), up 1.4 percent, MCB Bank, up 0.7 percent and Hub Power Company, up 1.0 percent contributed most positive points to the index.

Going forward, analysts see volatility to prevail as market attempts to cross 44,000 points psychological barrier.

Companies reflecting highest gains include Sanofi Aventis, up Rs70.45 to close at Rs1,479.56/share, and Hinopak Motor, up Rs57.22 to close at Rs1,201.72/share.

Companies reflecting most losses include Shield Corporation, down Rs22.93 to close at Rs435.69/share, and National Refinery, down Rs22.84 to end at Rs434.13/share.

Highest volumes were witnessed in TRG Pakistan with a turnover of 17.57 million shares. The scrip shed 30 paisas to close at Rs31.93/share. Lotte Chemical was second with a turnover of 15.42 million shares.

It gained 48 paisas to close at Rs8.62/share. Azgard Nine was third with a turnover of 13.23 million shares. It shed eight paisas to finish at Rs14.92/share.