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October 23, 2019

Market inches up on quarterly earnings


October 23, 2019

The capital market inched up on Tuesday on the back of rising blue chip financial and exploration and production scrips, dealers said.

Faizan Munshi, head of foreign institutional sales at Next Capital, said the market remained directionless throughout the session with no major interest from investors, who waited for triggers.

“The stock market on Monday went down sharply by more than two percent on back of FATF strict warning and rise in the commission of brokers. Both the factors remained the same, and only bargain hunting from some of the individuals and financial institutions helped the market close on the positive note,” he added.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index gained 0.35 percent or 114.23 points to close at 33,198.96 points level. KSE-30 shares index followed suit with a high of 0.36 percent or 55.78 points to end at 15,487.23 points level.

Of 344 active scrips, 188 were up, 135 retreated, and 21 remained unchanged. The ready market volumes stood at 83.612 million shares, as compared with the turnover of 130.285 million shares in the previous session.

Madiha Javed, head of research at Ismail Iqbal Securities, said, “The KSE-100 index remained range-bound throughout the session, as investors continued to cover their positions due to rollover week.”

As per PBS data released on Tuesday, cement price up north increased by Rs8/bag which led some recovery in the cement sector, she added.

Most of the investors stayed away from the market because of the Azadi March called by Maulana Fazalur Rehman on October 27, where he would stage a sit-in in Islamabad, this worried both local and foreign fund houses, a leading trader said.

A few selected stocks from the banking sector, oil and gas exploration helped the index close on a positive note. Banking sector was up after State Bank of Pakistan’s forecast that banks in the second half of the current fiscal year would perform well on higher interest and exposure on the high yielding bonds.

Moreover, oil and gas exploration stocks were up following inching of crude oil prices and above expectation financial results.

Arif Habib Limited in their report said, “Low volumes were witnessed amidst selling pressure in cement, steel, and banking sectors.” Concerns over activity on the borders with India, political uncertainty due to JUI-F’s protest and FATF reverberated during the session, brokerage house added.

Salman Ahmad, head of institutional sales at Aba Ali Habib, said the dividend yields and PE have been good, but the volumes have moved down which might see some more pressure in the coming sessions because of political uncertainty.

The highest gainers were Nestle Pakistan, up Rs300.00 close at Rs6,300.00/share, and Bhanero Textile, up Rs35.68 to finish at Rs914.99/share.

Companies that booked highest losses were Wyeth Pakistan Limited, down Rs23.02 to close at Rs679.98/share, and Jubilee Life Insurance, down Rs16.78 to close at Rs318.93/share.

Lotte Chemical recorded the highest volumes with a turnover of 10.813 billion shares. Its scrip gained Rs0.33 end at Rs16.26/share.

The lowest volumes were witnessed in Maple Leaf, recording a turnover of 2.369 million shares, whereas the scrip lost Rs0.19 to end at Rs15.60/share.