Stocks soar taking no-trust vote in stride

Stocks shot up on Thursday betting on rewarding earnings in the upcoming results’ season, as investors seem

to have finally decided to absorb the outcome of ongoing political struggle, traders said.

Pakistan Stock Exchange's (PSX) benchmark KSE-100 Share Index gained

591.27 points or 1.33 percent to end at 44,928.83 points, testing an intraday high and a low of 44,928.83 and 44,337.56 points, respectively.

Moody’s Financial Services in a report on Thursday said the no-confidence motion against the Prime Minister of Pakistan had raised Pakistan’s policy uncertainty, which it added was a credit negative.

Khurram Schehzad, CEO of Alpha Beta Core, in a post-market comment, said credit negative, because of no policy being taken. “It will be risky until clarity on the political front emerges,” Schehzad said.

Zafar Moti, a former director PSX, said the market was abuzz with positive activities as fund managers and investors remained busy building their portfolios, shrugging off the political uncertainties.

“Capital market is not taking cues from Islamabad anymore; however, a stronger dollar, currently a bit scarce in the available in the open market, may affect the market,” Moti said.

He added that the country’s import bill would eventually increase and it would not be able to finance the subsidy on oil forever.

KSE-30 Shares Index also increased 194.41 points or 1.15 percent to 17,117.48 compared with 16,923.07 points recorded in the last session.

JS Research in its daily market report said going forward, “we expect the volatile activity to continue and recommend investors to avail any downside as an opportunity to buy in the cement and steel sectors”.

Traded shares increased 71 million to 415.63 million from 344.13 million, while value also improved to Rs9.675 billion from Rs7.779 billion.

Turnover in the futures’ contracts increased to 100.97 million shares from 96.56 million.

Market capital expanded to Rs7.582 trillion from Rs7.481 trillion. Out of 362 companies active in the session, 273 posted gains, 75 losses, while 14 remained unchanged.

Nabeel Haroon at Topline Securities said participation went north following the news that the Prime Minister was going to address the nation on Thursday evening, which investors thought would help make sense of the political situation.

Major contributions to the index came from SYS, FFC, ENGRO, and EPCL as they added 201 points to the index, while HBL, UBL, HUBC, and PPL dragged it down by 25 points.

The highest increase was recorded in share prices of Nestle Pakistan XD, which rose Rs321.73 to Rs5,821.73 per share, followed by Bata (Pak), whose value increased Rs141.43 to Rs5,821.73 per share.

Thursday’s major loser was Allawasaya Textaile as it slipped Rs101.04 to Rs1,246.22 per share, followed by Wyeth Pak Ltd XD that fell Rs51.90 to Rs2,007.70 per share.

Arif Habib Ltd said investors seemed to be optimistic after decline in international oil prices and expectation of solid financial results in cement stocks.

K-Electric was the highest traded stock with 56.07 million shares, trailed by Treet Corp with 34.44 million.

Other major turnover-makers were Telecard Limited, Ghani Glo Hol, Agritech Limited, Pak Elektron (R), Waves Singer, TPL Properties, Cnergyico PK and WorldCall Telecom.