Stocks rise for third day on energy shares

Stocks on Friday rose for third straight session as surging crude oil set energy shares on fire, while valuations continued to charm investors amid easing second corona wave fears and strong earnings' bets, dealers said.

Pakistan Stock Exchange’s (PSX) benchmark KSE-100 shares index gained 1.10 percent or 444.81 points to close at 40,798.43 points, while volumes decreased to 358.824 million shares from 476.869 million shares in the previous session.

Topline Securities in a note said, “The market continued its momentum as heavy weight E&P sector extended gains, closing 1.86 percent higher on back of further increase in crude oil prices”.

Major contribution to the index came from HBL, HUBC, OGDC, PPL, and TRG as they cumulatively contributed 197 points to the index, the brokerage said.

Muhammad Saeed Khalid, head of research at Shajar Capital, said, “The market remained robust, mainly lead by Shariah-based companies’ stocks that largely hit upper caps”.

"We have noticed food and automobile sectors are the focus of investors' participation as PBS (Pakistan Bureau of Statistics) has announced SPI (Sensitive Price Index) numbers for the outgoing week, which surged 1.24 percent,” Khalid added.

KSE-30 shares index followed the benchmark’s suit with a high of 0.89 percent or 152.11 points to end at 17,279.49 points.

Analyst Ahsan Mehanti from Arif Habib Corporation said, “Stocks closed stronger with higher trades on robust global equities and surging crude oil prices”.

Pressure remained in leveraged stocks amid surging government bond yields, he added.

“Investor speculations ahead of major quarter-end earning announcements due next week, NEPRA decisions over tariff increase to ease circular debt crisis, and strengthening rupee kept the bullish activities going, Mehanti added.

Trading activity was recorded in 409 active scrips, of which 272 moved up, 124 lower, and 13 remained unchanged.

A A Soomro, managing director, KASB Securities said, “It was another positive day for the stocks as the green streak continues and investors are building up on the momentum by buying the asset valuations amid earnings rebound story”.

September results were luring the bulls back in the market on the expectations of stronger corporate results, he said.

“Somehow, the political noise seems to be a forgotten worry in last few days as market has seen a V-shaped recovery,” Soomro said, adding that it also seemed that concerns over the risks of second COVID-19 wave were overblown.

The expected upcoming triggers were likely to dominate the investor mood for next 3-4 months, he added.

“The coast does look clear for next few weeks as optimism kicks in. Investors are herding with the bulls again,” Soomro said.

Rafhan Maize, up Rs200 to close at Rs8,350/share, and Phillip Morris Pakistan, grabbing Rs99.28 to finish at Rs1699.28/share, scored highest gains, while Nestle Pakistan, down Rs95.10 to close at Rs6,510.00/share, and Sapphire Fibre, losing Rs54.99 to close at Rs681.01/share, suffered most losses.

Recording 53.955 million shares, Hascol Petrol led volumes chart, down Rs0.89 to end at Rs16.69/share, while Pakistan International Bulk’s turnover was lowest with 8.985 million traded shares, up Rs0.14 to end at Rs12.09/share.