Stocks gain on strong valuations in auto, energy sectors

Stocks maintained positive streak for the second consecutive session on Tuesday as investors took fresh bets in autos, energy, and cement scrips on strong valuations, while relatively better political climate improved sentiments, dealers said.

An analyst at Arif Habib Limited said market continued its positive trend as culmination of senate elections gave the participants confidence to further invest in the market, however, full confidence has not been restored yet.

“Absence of foreign selling is also helping the market take shape and key sectors such as cement, fertiliser and banks are seeing improvement in price levels,” the analyst added.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index gained 0.48 percent or 207.15 points to close at 43,618.08 points. KSE-30 shares index gained 0.42 percent or 92.15 points to close at 21,848.18 points. As many as 365 scrips were active of which 220 advanced, 126 declined and 19 remained unchanged.

The ready market volumes stood at 152.323 million shares as compared with the turnover of 109.725 million shares a day earlier.

Analyst Mohammad Arbash at Elixir Securities said equities edged up in the second consecutive session, while activity also improved in the wider market.

“Gas utilities came in limelight and closed higher on positive news flow of government considering increasing gas prices by 5-7 percent. Sui Southern Gas surged 2.5 percent while Sui Northern Gas closed up 1.0 percent,” he said.

Cements closed mixed, despite another round of reported increase in cement prices up north. Financials closed positive with United Bank up 0.56 percent, and MCB Bank up 1.2 percent, leading gains in the sector on reported foreign buying.

DG Khan Cement up 0.26 percent also performed well, where most of the trades were executed while the scrip price was moving positive.

Analysts see the market building on positive momentum and KSE-100 index likely testing 44,000 points psychological barrier. Clarity on the political front and possible announcement of amnesty scheme could boost investors' confidence.

Companies with the highest gains included Nestle Pakistan, up Rs100 to close at Rs12,350/share, and Pakistan Tobacco, up Rs39.95 to close at Rs2,035.05/share.

Companies reflecting most losses included Rafhan Maize, down Rs100 to close at Rs7,700/share, and Bhanero Textile, down Rs31.51 to end at Rs700/share.

Highest volumes were witnessed in Azgard Nine with a turnover of 8.96 million shares. The scrip gained 84 paisas to close at Rs15.46/share. Nimir Resins was second with a turnover of 8.29 million shares. It gained 29 paisas to close at Rs8.49/share. Pak Elektron was third with a turnover of 8.2 million shares. It gained 74 paisas to close at Rs45.22/share. 