Can't connect right now! retry

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!

Stocks ride global surge; textiles in focus


January 22, 2021

Stocks on Thursday trailed a record global rally triggered by Joe Biden’s inauguration as the US president, with textiles mostly stealing the local limelight on zero-rating hopes, dealers said.

Pakistan Stock Exchange's (PSX) benchmark KSE-100 shares index gained 0.67 percent or 307.52 points to close at 45,984.46 points. Volumes surged to 606.380 million shares, from 476.618 million on Wednesday. KSE-30 was up 0.64 percent or 122.61 points to end at 19,148.16 points level.

Analysts at Topline Securities said the market largely shrugged off current account deficit of $662 million in December 2020 after recording a surplus for five straight months, while higher US markets strengthened investor interest.

LUCK, ENGRO, and TRG remained in the limelight, while Textile sector also remained on investor radar amid signs the government might restore zero-rating regime in upcoming budget, the brokerage analysts added.

Salman Ahmad, head of institutional sales at Aba Ali Habib Securities, said the rise in global stock markets and crude oil prices lifted the local stocks.

The confidence restored internationally following Joe Biden’s inauguration as the new US President as his assurance to revitalise the economy was welcomed by the investors at large, he said.

Shahab Farooq, director research at Next Capital, said the market was able to achieve positive momentum, closing above 46,000 points level.

Moreover, result season was in focus amid healthy growth and payout expectations, Farooq added.

As many as 418 shares were active on Thursday, out of which 227 rose, 173 fell, and 18 ended without a change.

Muhammad Saeed Khalid, head of research Shajar Capital, said stock market performed mainly on the announcement of ECC meeting, which led the index to close just above the psychological level of 46,000 points, marking an intraday high of 467 points.

The benchmark index performed mainly due to the recovery of oil and textile scrips, he said.

Khalid said despite, the issuance of show-cause notices to different companies by the SECP for the inquiry regarding the unusual price movements, the scrips remained positive during the session.

“We have also noticed strong participation in K-Electric mainly after the dismissal of privatisation case against the company, where we have noticed an intra-day trading volume of 144 million shares,” Khalid added.

Analyst Ahsan Mehanti from Arif Habib Corporation said stocks showed recovery in the earnings season rally led by selected scrips across the board as investors weighed higher global equities and crude oil markets.

Mid-session pressure remained on concern for current account deficit at $662 percent for December 2020, surging government debt and uncertainty over SBP policy announcement tomorrow.

Upbeat data for LSM growth, auto, POL, and cement sales for July-December 2020 and reports of robust growth of 22.7 percent in textile exports for December 2020 fueled the rally, Mehanti added.

Rafhan Maize, securing Rs579 to close at Rs10,479/share, and ICI Pakistan, strengthening by Rs39.88 to finish at Rs842.05/share, turned out to be highest gainers of the day.

Gatron Industries, losing Rs19.99 to close at Rs600/share, and Mari Petroleum, losing Rs17.28 to close at Rs1450.60/share, ended the day with most losses.

K-Electric Limited topped the turnover chart with 143.822 million shares, while Azgard Nine was the least traded share with only 12.196 million shares changing hands on Thursday.