Stocks inch up with institutional support but politics drags again

Stocks inched up in a lackluster trade on Monday after institutions bought blue-chip shares, though political and economic uncertainties again dragged on the market, dealers said.

An analyst said market started the week on a positive note, shrugging off previous day’s losses to close in green. “Market sentiment improved following the meeting of PSX delegation with Miftah Ismail (adviser to the prime minister on finance) to discuss exchange’s proposals for the upcoming federal budget,” the analyst added.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index gained 0.41 percent or 176.39 points to close at 43,539.60 points. KSE-30 shares index gained 0.69 percent or 149.32 points to close at 21,700.01 points. As many as 369 scrips were active of which 188 advanced, 166 declined and 15 remained unchanged.

The ready market volumes stood at 115.968 million shares as compared with the turnover of 193.39 million shares a day earlier. Ahsan Mehanti at Arif Habib Corp said stocks closed up amid thin trade led by second and third tier scrips on strong earnings outlook. “Likely receipt of $2.0 billion deposit from friendly countries to meet foreign exchange obligations invited investor interest,” Mehanti said. “Moreover, upbeat auto sales, recovery in global crude prices played a catalytic role in higher close in the post earning season consolidation.”

Healthy activity was witnessed in exploration and production (E&Ps), commercial banks and auto assemblers, with blue chip stocks leading the rally. Habib Bank down 1.1 percent led the laggards list, following result announcement, which was below expectations.

Institutional interest was seen in index name wherein Oil & Gas Development Company up 2.3 percent, MCB Bank up 2.13 percent, Engro Corp up 1.9 percent and Pakistan State Oil up 3.1 percent contributed to the positive movement.

On the other hand Habib Bank down 1.1 percent, Pakistan Petroleum down 1.1 percent and Dawood Hercules down 2.5 percent witnessed selling.

Companies reflecting highest gains include Rafhan Maize up Rs100 to close at Rs7,800/share and Ghandhara Industries up Rs40.21 to close at Rs844.48/share. Companies reflecting most losses include Philip Morris down Rs157.5 to close at Rs2,992.5/share and Pakistan Tobacco down Rs105.25 to end at Rs1,999.75/share.

Highest volumes were witnessed in Lotte Chemical with a turnover of 20.1 million shares. The scrip gained 34 paisas to close at Rs10.35/share. Nimir Resins was second with a turnover of 9.49 million shares. It gained 97 paisas to close at Rs11.11/share. Fauji Foods was third with a turnover of 6.04 million shares. It gained Rs1.0 to close at Rs29.74.