Stocks gain 0.8 percent in day of roller-coaster trade

Stocks rose in volatile trade on Thursday, helped by late short-covering following an earlier gain and later selloff as an oversold market baited investors into bargain-hunting, dealers said.

“From 439 points positive earlier in the day to almost flat and then again rising by 350 points towards the end, the index witnessed a highly volatile session,” said analyst Muhammad Faizan at Next Capital Limited.

Pakistan Stock Exchange’s (PSX) benchmark KSE-100 shares index gained 0.8 percent or 291.78 points to close at 36,796.03 points, while KSE-30 put on 1.02 percent or 178.11 points to end at 17,567.41 points.

Of 338 active scrips, 207 moved up, 108 retreated, and 23 remained unchanged. The ready market volumes stood at 106.814 million shares, compared to 115.987 million shares in the previous session. Dealers said buyers were active in the market amid hopes that premier's upcoming tour to China may result in a big breather for economy, especially in the shape of an accelerated bailout deal with International Monetary Fund (IMF).

Topline Securities in a post market note said following a fall of around 5.5 percent in April (till 24th), the benchmark index slightly recovered 0.8 percent as amnesty scheme is likely to be presented in front of cabinet next week.

“Further, likely meeting of Prime Minister Imran with IMF chief in China and expected arrival of IMF mission from Apr 27-30, 2019 also restored investors’ confidence in getting bailout package,” the brokerage said.

Bullish activity was led by banking and oil stocks amid speculation on financial results in earnings season. Commercial banks added 214.29 points followed by fertilisers and cements. Pakistan Stock Exchange opened on a positive note and recorded appreciable gains during the session hitting the session high of 36,944 points, which was indicative of the fact the market is in the oversold zone and investors went after the attractive valuations in select stocks.

Salman Ahmad, head of institutional sales at Aba Ali Habib Securities, said several key companies moved in a narrow band with low volume, while a technical glitch also forced the players to stay away from the market. “Uncertainty over the IMF deal has been dictating the market is likely to act in a same fashion until clarity on this front remains elusive,” he added.

During the session the trade was halted due to a technical glitch, which was resolved after an hour. The stock market has been dire need of some positive developments from the economic fronts. Another analyst said genuine investors were still shy of trade as the financial results pouring into the market were mixed to negative and only handful companies were showing strength.

The highest gainers were Phillip Morris Pakistan up Rs110.46 to close at Rs3099.98/share, and Faisal Spinning, up Rs12.39 to finish at Rs267.29/share.

Companies that booked highest losses were Nestle Pakistan, down Rs299.00 to close at Rs7700.00/share, and Bata Pakistan, down Rs81.50 to close at Rs1548.50/share.

Bank of Punjab recorded the highest volumes with a turnover of 11.264 million shares. The scrip gained Rs0.54 to close at Rs12.55/share.

The lowest volumes were witnessed in WorldCall Telecom recording a turnover of 7.407 million shares, whereas the scrip lost Rs0.02 to end at Rs1.02/share.