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!
April 21, 2021

Stocks rally on results, UAE loan rollback


April 21, 2021

Stocks took a hop on Tuesday as some strong financial results and easing security concerns sparked a sentiment driven rally at the apex bourse, dealers said.

Pakistan Stock Exchange’s (PSX) KSE-100 Shares Index gained 1.08 percent or 486.21 points to close at 45,399.78 points. Volumes were flat at 343.28 million shares compared to 363.09 million on Monday.

Topline Securities in its market review said equities witnessed a rebound from yesterday’s sell-off with the index closing the day above the psychological level of 45,000 points.

“The uptrend is attributable to successful negotiations between the government and the protesting right wing political parties,” the brokerage said.

The loan payment rollover by UAE and a 8 percent month-on-month higher FDI number for March 2021 further buoyed sentiment, the Topline report said.

As many as 401 scrips were active of which 280 advanced, 102 declined, and 19 remained unchanged.

Ahsan Mehanti at Arif Habib Corp said stocks closed higher led by scrips across the board on reports of government consensus with religious groups to end protests and UAE’s rollback of over $2 billion loan repayment due this week.

He said mid-session pressure remained on concerns over declining foreign direct investment; however, surging global crude oil prices and investor speculations in the earning season led to bullish close, Mehanti added.

KSE-30 shares index gained 0.93 percent or 170 points to close at 18,532.90 points.

Arif Habib Limited in a report said the market went up by 645 points in the day and closed with a gain of 459 points on account of a host of corporate result announcements scheduled for the day.

Although the results of key companies posted healthy growth, the pertinent stock prices did not respond in the same fashion, the brokerage said.

Among the key results announced at the bourse were Habib Bank, International Steel, Amreli Steels, and Meezan Bank; however, the price performance remained muted, it added.

Amreli Steels on the other hand went down post announcement due to selling pressure.

The government’s resolution to improve the law and order situation somewhat allayed investor fears.

Technology stocks, particular Telecard and TRG Pakistan helped change the sentiment tide early on, when TRG announced material information regarding one of its subsidiaries, which resulted in the scrip showing bids at upper circuit in the pre-open session.

Muhammad Mubashir at JS Global Capital said some stimulus was provided by news of UAE's extension given to Pakistan for loan repayment.

Furthermore, negotiations between the government and Tehreek-e-Tabbaik Pakistan (TLP) resumed, Mubashir added.

TRG remained in the limelight throughout the day on material information pertaining to its associate company.

Analysts expect volatility to prevail, due to political tension in the country and recommend investors to book profits on the higher side and wait for any sharp dips to accumulate value stocks in the cement, refinery, and steel sectors.

Rafhan Maize, up Rs568 to close at Rs9.818/share, and Island Textile, up Rs144.6 to close at Rs2,074/share posted highest gains.

Premier Sugar, down Rs26.90 to close at Rs335.6/share, and Mari Petroleum, down Rs19.95 to end at Rs1,595.61/share ended up the worst losers.

Worldcall Telecom, with a turnover of 57.04 million shares, was the most traded stock, followed by Unity Foods with 30.64 million shares, and Ghani Global was third with 24.64 million shares.