Stocks leap as data beats lockdown blues

Stocks spun higher on Monday led by textiles and technology on dollar strength, while upbeat economic data cheered investors out of virus lockdown blues, traders said.

Pakistan Stock Exchange's (PSX) benchmark KSE-100 Shares Index gained Rs397.96 or 0.85 percent to close at 47,453.25 points, touching a day high of 47,508.74 points and a low of 47,051.81 points.

Ahsan Mehanti, analyst at Arif Habib Corp, said, stocks showed sharp recovery in the earnings season amid late session buying on reports of record $2.35 billion exports in July surging 17.3 percent year-on-year. Higher global crude oil prices and speculations ahead of major earning announcements this week strengthened the sentiment, Mehanti added.

KSE-30 index also gained 148.18 points or 0.79 percent to end at 18,985.23 points. Haris S Khan, an analyst at Topline Securities, said taking cue from Asia-Pacific markets, Pakistani equities moved higher.

The market participants shrugged off lockdown concerns and cheered a higher tax collection of Rs143 billion by the FBR (Federal Board of Revenue) during the month of July 2021 coupled with a lower CPI (Consumer Price Index), which clocked in at 8.4 percent year-on-year as compared to 9.7 percent in June 2021,” Khan said.

According to Topline analyst, export-oriented textile sector came under the limelight after the dollar-rupee exchange rate went as high at 164 in trade. GATM, NCL, and NML closed the day higher by 7.56 percent, 4.33 percent, and 2.28 percent respectively, he added.

Moreover, the technology sector also saw renewed interest owing to the depreciating rupee after which TRG, SYS, and AVN gained 1.88 percent, 2.05 percent, and 7.50 percent respectively.

Traded shares, however, decreased 147 million shares to 252.34 million against 399.09 million shares, while trading value dropped to Rs9.25 billion from Rs13.76 billion. On the other hand, market capital rose to Rs8.308 trillion from Rs8.242 trillion. Out of 486 active shares in the session, 352 advanced, 118 retreated, while 16 remained neutral.

Colgate Palmolive was the top gainer of the day, rising Rs43.54 to close at Rs2,854.26 per share, followed by AKD Hospitality that grabbed Rs29.56 to end at Rs423.70 per share. Bata Pakistan suffered most losses after shedding Rs80 to Rs1,550 per share, followed by Gatron Industries that weakened by Rs36.01 to settle at Rs454 per share.

Brokerage Arif Habib Limited in a note said disregarding the stringent Covid lockdown conditions, the market performed well in thin trade. It said activity was tilted towards technology and textile sectors, mainly due to ascending rupee-dollar parity.

Besides, these sectors, investors took fresh positions in chemical, oil and gas marketing companies and cement sector stocks after the successful closure of the rollover week on Friday, the brokerage said.

It added that financial results posted earlier in the session also helped reinforce and restore investor confidence. Among well-traded stocks of the day were WorldCall Telecom, Hum Network, Byco Petroleum, Telecard Limited, Hascol Petrol, Engro Polymer, Unity Foods Ltd, Avanceon Ltd, Silk Bank Ltd, and Dost Steels Ltd.

WorldCall Telecom led volumes with 16.85 million shares, gaining 3 paisas to end at Rs3.49/share. It was followed by Hum Network with 15.98 million shares, up 45 paisas to end at Rs7.17/share. Share turnover in the future contracts reduced to 66.22 million shares from 281.37 million in the previous session.