Stocks end over 1pc higher, blue-chips drive gains

Stocks extended gains to a second session on Friday, with blue-chip shares led a broad-based advance, dealers said.

The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share index gained 487.85 points or 1.10 percent to close at 44,821.53 points against 44,333.68 points recorded in the last session. The highest index of the day remained at 44,834.83 points while the lowest level of the day was recorded at 44,193.48 points. KSE-30 index also gained 178.45 points or 1.03 percent to close at 17,521.47 points.

Analyst Ahsan Mehanti at Arif Habib Corp said bullish activity continued on surging global equities and Brent crude oil prices to over $85/barrel.

“Finance Minister hints over five percent growth projections for FY22, strong financial results, and investor expectations for the release of next IMF tranche amid a resumption of $6 billion EFF played major role in bullish close,” Mehanti said.

Traded shares, however, decreased by 54 million shares to 334.32 million shares from 388.59 million shares. The trading value dropped to Rs11.79 billion from Rs13.08 billion. Market capital rose to Rs7.794 trillion from Rs7.747 trillion. Out of 356 companies active in the session, 226 posted gains, 116 losses while 14 remained neutral.

Dealers said feel good factor had returned in the market as index closed in green on the last trading day of the week.

“Building anticipation of revival of IMF program and likelihood of civil-military leadership reaching consensus over the appointment of new ISI chief fueled the market performance,” a dealer said.

“Major contribution to the index came from POL, MCB, OGDC, SYS, and LUCK, as they cumulatively contributed 173 points to the index.”

Another dealer said as the country is closer to resuming the IMF program and receiving a $1 billion tranche, the market is expected to perform well in-tandem.

“Whereas recent bouts of selling at the index have once again opened up valuations, it is advisable to cherry-pick blue chip stocks with a long term focus.”

He said key short term risks include: regional volatility and the ensuing security concerns, together with rupee depreciation.

The highest increase was recorded in shares of Nestle Pakistan, which rose by Rs50 to Rs5,900/ share, followed by Highnoon (Lab) that increased by Rs42.51 to Rs617.61/share. A major decline was noted in shares of Wyeth Pak Ltd, which fell by Rs83.25 to Rs1,597.75/share, followed by Pak Tobacco that decreased by Rs47.17 to Rs1,102.50/share.

Service Fabrics remained the volume leader with 34.26 million shares with an increase of 77 paisas to Rs11.71 per share. It was followed by Unity Foods Ltd with 26.47 million shares that closed higher by Rs1.79 to Rs30.29 per share.

Stocks that recorded significant turnover included WorldCall Telecom, Treet Corp, Byco Petroleum, Telecard Limited, Hum Network, Azgard Nine, Lotte Chemical, and Ghani Glo HolXB.

Shares’ turnover in the future contracts decreased to 96.08 million shares from 101.23 million shares.