close
Tuesday May 17, 2022

Stocks gain on upbeat economic data

By Our Correspondent
May 14, 2022

Stocks gained more than one percent on Friday as a swath of positive data, easing some pressure off the country’s otherwise bleak economic outlook, boosted economically sensitive sectors, dealers said.

Larger-than-expected remittances inflow, over 10 percent growth in large scale manufacturing sector and reports of additional funding from ADB for budgetary support lifted investor’s sentiments.

Securing a gain of 588.02 points or 1.37 percent, the benchmark KSE-100 Shares Index closed at 43,486.46 points after touching a day high of 43,505.75 and a low of 42,853.50 points at Pakistan Stock Exchange.

Arif Habib Corp’s Ahsan Mehanti said closed sharply higher led by scrips across the board on a bull run in Asian stocks and reports of $3.1 billion record home remittance in April.

Reports of likely ADB approval of up to $2 billion additional support loan by December 2022, World Bank report projecting 8 percent growth in remittance for FY2023 and surge in global crude oil prices boosted sentiment, he said.

Muhammad Waqar Iqbal at JS Research said after a week of range-bound sessions, bulls made a comeback.

“We believe a decision regarding petroleum prices, progress on the IMF programme, and rupee stability will be the key triggers for the index going forward,” Iqbal said.

KSE-30 index also closed higher 234.15 points or 1.44 percent to 16,541.97 points compared with 16,307.82 points recorded in the last session.

Volumes decreased by 76 million shares to 208.112 million from 284.503 million shares. The trading value dropped to Rs6.972 billion from Rs7.800 billion. Turnover in the future contracts decreased to 70.135 million shares from 75.443 million. Market capital expanded to Rs7.199 trillion from Rs7.106 trillion.

Nabeel Haroon, an equity dealer at Topline Securities, said the index traded sideways in dull trade; however, investor interest was observed in the second half of the trading session on the back of record April 2022 remittance number.

Nestle Pakistan was the best gainer of the day, rising Rs173.16 to Rs5,789 per share, followed by Sapphire Fiber, which increased by Rs61.99 to Rs912 per share. Ismail Industries, the worst performer of the day, fell Rs31.70 to Rs426.05/share, followed by Siemens Pakistan that slumped Rs18 to Rs600 per share.

Brokerage Arif Habib Ltd in a note said stocks opened in the positive zone continuing the momentum from the last trading session.

The benchmark index managed to remain in the green throughout the day after data showed foreign remittances during April 2022 jumped 12 percent year-on-year, the highest ever, giving investors much-needed confidence resulting in value buying across the board, the brokerage said.

The analyst report further said although mainboard activity remained dull, hefty volumes were witnessed in the third tier stocks.

Sectors contributing to the performance included banks (+136.1 points), energy (+127 points), cement (+46.7 points), and autos (+46.6 points), the brokerage said.

Treet Corp was the volume leader with 20.904 million. The stock climbed by 29 paisas to Rs31.74 per share. It was followed by Cnergyico PK with 20.897 million shares. The oil sector stock rose by 8 paisas to Rs5.49 per share.

Other stocks that recorded significant turnover included Pak Refinery, Lotte Chemical, WorldCall Telecom, Unity Foods Ltd, Hum Network XD, G3 Technologies, Ghani Global Holding, and TPL Properties.

Comments