Stocks marginally up in thin trade

Stocks managed to gain 0.4 percent on Friday despite lacklustre trade after a three-day Eid recess as heavyweight oil, fertiliser and food shares helped turning the intraday losing streak into victory in the end, dealers said.

Shumaila Badar, head of Research at Ismail Iqbal Securities said the market was range-bound through most of the session but then slightly trended up towards the end of the day. “Fertilisers were the top driver of the Index due to expectations that the new government would soon focus on agriculture and textile sectors,” Badar said. “Market participants appeared to brush aside a weekly report that showed urea prices declined last week.”

The benchmark KSE-100 shares Index of Pakistan Stock Exchange rose 0.38 percent or 163.19 points to close at 42,588.29 points. KSE-30 shares Index increased 0.37 percent or 78.20 points to end at 21,011.53 points.

Of the 341 active shares, 190 increased, 133 decreased, and 18 remained unchanged. The ready market volumes, however, stood at 115.892 billion shares compared to 147.552 billion in the previous session.

Analysts said activity remained dull because of no significant earnings announcements. The cabinet meeting did not appear to much affect the market as investors were not expecting anything pertinent to the market in the agenda.

Moody’s report, however, positively affected sentiments after it forecast current account deficit at 4.8 percent of GDP in the current fiscal year of 2017/18. Investors were expecting worst, according to analysts.

“We expect the market to be mix next week with earnings season a possible catalyst,” Badar said. The market during the early hours showed dull movement and index moved in a narrow band with losers leading the column. However, following the opening of second session heavy weights scored fresh gains under the lead of refineries and other oil stocks. Activity in the food related shares and steel also gathered momentum.

Oil stocks recorded fresh grounds on the back of reports in foreign media that crude oil would sharply spike in days ahead. Oil and Gas Development recorded an increase of 67 paisa/share while Pakistan Refinery was up 90 paisa/share.

Moreover food shares went up as investors expected sales to be higher this year. National Foods increased Rs3 to Rs290. Ahsan Mehanti, chief executive at Arif Habib Commodities said stocks closed bullish amid thin trade as investors were expecting earnings season rally.

“Surging global crude oil prices, rise in local urea prices and upbeat cement and fertiliser sales for July played a catalyst role in positive close,” Mehanti added. Companies reflecting highest gains included Phillip Morris Pakistan, up Rs149.62 to close at Rs3,142.12/share and Sanofi-Aventis, rising Rs50.60 to end at Rs1,125.60/share.

The major losers were Colgate Palmolive, down Rs47/share to end at Rs2,953/share, and Bata Pakistan, falling Rs31.98 to close at Rs1,865/share. The highest volumes were witnessed in Unity Foods Limited with a turnover of 7.861 million shares.

The scrip gained Rs2.08 to close at Rs43.80/share. It was followed by K-Electric Limited with a turnover of 5.137 million shares. Its share gained Re0.18 to end at Rs5.58/share. DG Khan Cement Company Limited witnessed the lowest volume with a turnover of 1.484 million shares. Its stock lost Re0.86 to finish at Rs119.78/share.