Stocks rise as oversold names shine

Stocks rallied on Thursday as institutions binged on oversold shares, with a recovering rupee also stoking sentiment to some extent, traders said.

The Pakistan Stock Exchange's (PSX) benchmark KSE-100 Share Index recouped by 228.41 points or 0.49 percent to close at 46,625.12 points with the highest and lowest on the day being 46,662.44 points and 46,396.71 points respectively.

Zafar Moti, former director PSX, said the overall situation was negative for few days, as the market was testing to break the 46,000 level.

“But, buying was witnessed by big players. Besides, there was some improvement in rupee valuation that invited purchases.” “Some new IPOs are also coming and the situation of the IT sector will improve,” Moti added.

He said results were already good but there were also concerns over currency, Afghanistan situation, interest rates, and liquidity crunch.

“Big players placed orders today. The market will again go beyond 48,000 points level soon,” he said.

KSE-30 Shares Index also rose 48.05 points or 0.26 percent to 18,607.68 points.

Traded shares, however, decreased 81 million to 396.43 million shares from 477.86 million shares. Trading value increased to Rs16.53 billion from Rs14.69 billion.

Market capital increased to Rs8.169 trillion from Rs8.159 trillion. Out of 525 companies active in the session, 252 posted gains, 245 losses, while 28 remained neutral.

Haris S Khan, an analyst at Topline Securities, said, the index witnessed a recovery from yesterday’s selloff.

However, the MSCI EM constituents continued to witness selling pressure with LUCK and HBL dragging the index lower by 41.9 points and 18.04 points respectively,” he added.

The major gainers were PSEL, TRG, MEBL, SYS, and ENGRO which cumulatively added 160 points to the benchmark Index.

On the notices front, PPL notified the exchange of a hydrocarbon discovery from exploratory well, Jugan-1, in the province of Sindh.

On the results front, GGL announced FY21 earning per share (EPS) of Rs2.34 along with a bonus issue of 15 percent. Moreover, GGGL also unveiled its FY21 EPS of Re0.85 as compared to Re0.33 in FY20.

The highest increase was recorded in shares of Nestle Pakistan, which rose by Rs130.50 to Rs6,295 per share, followed by Allawasaya Tex that improved by Rs87.50 to Rs1,254.21 per share.

Gatron Industries was the worst loser as it fell by Rs38.89 to Rs480.01 per share, followed by Pakistan Tobacco that dropped by Rs26.31 to Rs1,165.69 per share.

Analyst Ahsan Mehanti at Arif Habib Limited said, stocks showed recovery on renewed institutional interest in oversold oil and banking scrips.

Bank deposits surging by 18 percent year-on-year for August 2021, POL sales rising by 22 percent year-on-year July-August period, speculations on likely EU approval over GSP plus exports status supported the sentiment, he said.

Ghani Global Holdings led volumes chart with 56.82 million shares. The stock dropped by Rs3.44 to Rs44.95 per share.

Telecard Limited was second with a turnover of 41.11 million shares. It also lost 14 paisas to close at Rs22.97 per share.

Stocks that recorded significant turnover included WorldCall Telecom, TPL Corp Ltd, Service Fab (R), TPL Properties, Ghani Global Glass, Kohinoor Spinning, Avanceon Ltd, and Citi Pharma Ltd.

Turnover in the future contracts was flat at 126.65 million shares.