Stocks slightly up in cautious trade

Stocks closed slightly up on Monday in lacklustre trade as pre-budget jitters kept investors on edge, though last week’s decline prompted buyers to make fresh deals in choice scrips and companies assuring good dividends, dealers said.

Foundation Securities Head of Research Nauman Khan called it a lacklustre day at the bourse, and said that though the market remained in green throughout the day, the volumes remained thin while the results seemed largely unnoticed.

“Everyone is looking towards budget relief measures like rationalisation of CGT, dividend on bonus shares and punitive tax regime for brokers,” which, he said could generate the next leg of impetus for the market. “Then again, sustainability would depend on improving the macro and political picture.”

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index rose 0.25 percent or 112.62 points to close at 45,371.96 points. KSE-30 shares index rose 0.17 percent or 37.00 points to close at 22,346.17 points. As many as 360 scrips were active of which 187 advanced and 156 declined, whereas 17 remained unchanged.

The ready market volumes stood at 112.61 million shares as compared with the turnover of 144.01 million shares in the last session. Brokerage BIPL securities in its report said the sentiments at the local bourse remained positive throughout the session on the back of the new National Tariff Policy, which seeks reduction on more than 450 tariff lines in the upcoming Budget 2018-19 to enhance exports competitiveness and productivity of local industries.

Moreover, the brokerage said that the market witnessed value buying at lower levels across the board which provided some relief, thereby keeping it in the positive zone during the entire session.

Sui Southern Gas Company (SSGC) and K-Electric were amongst the top volume leaders, as Prime Minister Shahid Khaqqan Abbasi intervened to resolve the tussle between the two companies, and assured Karachiites that the issue of load-shedding would be resolved.

The SSGC rose by Rs1.42 to close at Rs29.99/share on a volume of 11.1 million shares, while K-Electric rose 11 paisa to close at Rs6.98 on trading of 4.182 million shares. A host of financial results from Engro Chemical, Kohat Cement, and Pakistan State Oil helped garner some support for the market and key blue chips in financial and other companies traded in green.

Companies with the highest gains included Pak Tobacco, up Rs58.90 to close at Rs2155.00/share, and Colgate Palmolive, up Rs46.68 to end at Rs3400.01/share. Companies with the most losses were Service Industry, down Rs26.71 to close at Rs825.00/share, and Sanofi-Aventis, down Rs19.78 to close at Rs1250.22/share.

Highest volumes were witnessed in Unity Foods Ltd with a turnover of 11.112 million shares. The share gained Rs1.42 to close at Rs29.99/share. It was followed by SSGC with a turnover of 10.7 million shares.

Its scrip gained Rs1.26 to close at Rs37.51/share. Lowest volumes were witnessed in Lotte Chemical with a turnover of 7.60 million shares. Its scrip lost 25 paisas to close at Rs10.31/share.