Stocks follow Asian peers higher on virus slowdown hopes

Stocks rose over two percent on Tuesday, in line with broader Asia, on signs of

a slowdown in coronavirus-related deaths and new cases in some global hot spots, while

oil prices also supported investors sentiment, dealers said.

“Recovery in crude oil prices also provided support to the market, where E&P sector closed over four percent higher,” brokerage Topline Securities said in a market note. “Hefty buying was observed in the cement sector in final hours of the trade on reports that FBR has prepared notification relating to incentives for the construction sector.”

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index gained 2.13 percent or 652.40 points to close at 31,231.55 points level. KSE-30 shares index followed suit with a high of 2.51 percent or 339.79 points to end at 13,865.80 points level.

Of 335 active scrips, 215 up, 100 retreated, and 20 remained unchanged. The ready market volumes stood at 172.769 million shares, as compared with the turnover of 233.329 million shares in the previous session.

Analyst Ahsan Mehanti at Arif Habib Corporations said bullish sentiments witnessed at the market and oil, banking and cement scrips led the buying rally. “SBP relief measures including cut in key policy rates, cushion over asset quality and lending business played a catalytic role in bullish close,” Mehanti added.

Dealers said equities remained positive throughout the session as E&Ps witnessed rebound owing to increase in international crude oil prices and expectation of deal between OPEC and allies later this week.

Salman Ahmad, head of institutional sales at Aba Ali Habib said mutual funds, banks and insurance companies supported the overall rally and oil and exploration shares made healthy recovery.

“The market was engulfed with the talks that soon or later OPEC to sign deal to cut the daily output by almost 10 million barrels/day to stabilise the crude oil price which at one time slipped below $20 a barrel,” Ahmad said.

Samiullah Tariq, director research at Arif Habib said an air optimism surfaced at the market as the government making all out efforts to bring down the corona cases, which appeared to reduce down the rate of affecters.

“Moreover, there has been market talk that some of the industries have resumed partial operations and few waiting from Sindh government to allow companies to work three to five days a week, which would help improve overall sentiment,” Tariq added.

The top gainers were Unilever Foods, up Rs292.00 close at Rs7,100.00/share, and Pakistan Tobacco Rs71.99 to finish at Rs1,748.99/share.

Sapphire Textile down Rs50.00 to close at Rs732.00/share, and Wyeth Pakistan Limited Rs30.00 to close at Rs705.00/share, were the main losers.

Maple Leaf recorded the highest volumes with a turnover of 20.393 million shares. Whereas the scrip gained Rs1.14 end at Rs23.39/share. The lowest volumes were witnessed in Oil & Gas Development recording a turnover of 4.462 million shares, whereas the scrip gained Rs4.91 to end at Rs95.37/share.