Stocks inch up as value hunters go for oversold oil, financial shares

Stocks closed up on Tuesday following a volatile session as undervalued oil and financial scrips attracted institutional buyers and an assurance of timely elections by director general of the Inter-Services Public Relations (ISPR) restored some confidence among investors, dealers said.

Analyst Ahsan Mehanti from Arif Habib Corporation said stocks closed higher led by oil and banking scrips on institutional interest in oversold stocks.

“Easing political uncertainty after the accountability court announced verdict against former prime minister, higher global crude prices, and reports of record receipts of $300 million on account of tax amnesty scheme played a catalytic role in the higher close at the PSX,” Mehanti added.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index rose 0.42 percent or 164.33 points to close at 39,452.81 points. KSE-30 shares index rose 0.85 percent or 162.83 points to finish at 19,417.72 points.

Of 341 active scrips, 152 advanced, 178 declined, and 11 remained unchanged. The ready market volumes stood at 167.810 billion shares compared to a turnover of 123.582 billion shares in the previous session.

Analyst Radha Kirshan from WE-Financial Services Limited said the KSE-100 witnessed late recovery after the press conference by ISPR director general on measures being taken for timely and smooth elections prompted investors to take long positions on attractive valuations.

“Political concerns still prevail as Nawaz Sharif and his daughter Maryam Nawaz are due to arrive on Friday. On economic front, current account deficit has widened to $15.96 billion in July-May FY18, raising concerns over a balance of payment crisis,” the analyst added.

A brokerage house in its note said although the investors remained concerned with the political noise and the economic situation, value hunting due to attractive valuation levels helped the market turn green.

Commercial banks and E&P companies cumulatively pulled the market up by 198 points while automobile assembler and fertiliser kept the market in check by cumulatively removing 45 points.

The highest gainers were Colgate Palmolive, up Rs85.00 to close at Rs2,800.00/share, and Ghandara Industries, up Rs26.18 to finish at Rs634.29/share. Companies that booked most losses were Rafhan Maize, down Rs417.50 to close at Rs7,932.50/share, and Sanofi-Aventis, down Rs30.69 to close at Rs917.50/share.

Bank of Punjab recorded the highest volumes with a turnover of 5.869 million shares. The bank’s scrip gained Rs0.11 to close at Rs11.23/share. It was followed by TRG Pakistan Limited with a turnover of 5.491 million shares. Its scrip gained Rs0.58 to close at Rs26.80/share.

The lowest volumes were witnessed in Engro Polymer, recording a turnover of 13.195 million shares, and losing Rs0.33 to end at Rs28.03/share.