PSX edges up with energy shares

Stocks edged up on Friday as higher oil prices lifted energy shares in a noncommittal market faced with political standoff between the government and opposition alliance, dealers said.

“Positive momentum was observed at the exchange led by the E&P sector on the back of increase in crude oil prices, as the index heavy weight E&P sector gained 2.5 percent on day-to-day basis,” brokerage Topline Securities said in a post market note.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index gained 0.39 percent or 164.56 points to close at 42,470.40 points level.

KSE-30 shares index followed suit with a high of 0.33 percent or 58.32 points to end at 17,730.15 points level.

Volumes of benchmark index increased to 557.610 million shares, as compared with the turnover of 472.363 million shares in the previous session.

Trading activity was recorded in 414 active scrips, of which 225 increased, 167 lost, and 22 remained unchanged.

Analyst Salman Ahmad at Aba Ali Habib said the market showed stability following active investors’ participation in choice sectors with smart recovery in the crude oil prices.

“The upbeat movement was due to continuous rise in remittance amounting to $2 billion per month for the six months in running.”

Ahmad said opposition alliance, Pakistan Democratic Movement (PDM), planned a big anti-government show on Sunday, and “if it passes calmly the market is bound to close in positive note during 2020”.

Shajar Capital’s analyst Muhammad Saeed Khalid the investors were also curious mainly on the prevailing uncertainty on the line of control along with the continued protest by the PDM.

“Furthermore, investors mainly booked capital gains on the expected resignation by the opposition parties in the Sindh Assembly,” Khalid said.

“We have notice increase activity in the refinery, mainly on the rising international crude oil prices, sector despite intensifying circular debt matters.”

Technology stocks had a mixed day as TRG saw sharp decline, whereas NETSOL remained upwards. Similarly, Oil & Gas Exploration sector saw 2-3 percent positive closing.

It was another great day for refinery stocks while Netsol closed upper circuit.

Moreover reports of remittances grew to $2.3 billion kept investors’ mood elated and pushed the bears away.

Dealers said prolonged second virus wave might keep the formal channels alive to keep current account positive and improve Pakistan's external account/debt vulnerability.

Analyst Ahsan Mehanti from Arif Habib Corporation said stocks closed bullish amid record trades led by selected scrips across the board as investor weigh upbeat data on remittances, Moodys upgrade on longer term FC deposit ratings of Pakistan blue chip banks and ADB report affirming economic recovery supported by the government’s emergency relief.

Nestle Pakistan, up Rs94.48 to close at Rs6,819.48/share, and Sapphire Textile, strengthening by Rs40 to finish at Rs1,099/share.

Unilever Foods, down Rs900 to close at Rs13,600/share, and Colgate Palmolive, losing Rs70 to close at Rs2,830/share, were the main losers.

Pakistan Refinery led volumes with 84,824 million shares. The scrip gained Rs1.39 to end at Rs21.19/share. Pakistan International Bulk posted the lowest turnover with 13,282 million shares, & lost Rs0.3 to end at Rs13.25/share.