Wednesday July 06, 2022

Value-hunting lifts stocks amid political unrest

By Our Correspondent
May 26, 2022

Stocks on Wednesday shuttled between losses and gains to end a shade higher on value-hunting as a political unrest rages across the country, traders said.

Pakistan Stock Exchange's (PSX) benchmark KSE-100 Shares Index gained 62.34 points or 0.15 percent to close at 42,012.66 points.

Ali Najib, an equity dealer at Topline Securities, said stocks the bearish trend was owing to increasing political noise as PTI had launched its long march towards Islamabad with a bang.

“Investors walked on eggshells as political uncertainty crushed their morale, while further deterioration of rupee worsened the economic woes,” he said.

Initially, Najib said, the market opened on a negative note and made an intra-day low at 41,356 (-594 points or 1.42 percent).

However, value hunting kicked in at the aforesaid level, which assisted the benchmark index to recover, he added.

Fertiliser and energy sector’s stocks dragged down the index. EFERT, FFC, OGDC, PPL, and ENGRO together lost 157 points, while TRG, SYS, and POL added 54 points collectively.

KSE-30 Shares Index also ticked up 10.44 points or 0.07 percent to 15,913.04 points.

Traded volume increased 71 million shares to 240.046 million from 169.707 million shares, while value increased to Rs7.570 billion from Rs5.462 billion. Turnover in the future contracts decreased to 164.105 million shares from 240.634 million shares.

Market capital expanded to Rs7.000 trillion from Rs6.990 trillion.

Out of 324 actives in the session, 198 closed in green, 103 in the red, while 23 closed at their opening values.

Ahsan Mehanti at Arif Habib Corp said stocks recovered on reports of a likely IMF deal for the release of $1 billion tranche and rumours of government deal with PTI to call off a long march towards the federal capital.

Surging global equities and higher global crude oil prices contributed to a marginal bullish close, Mehanti said.

He added that mid-session pressure however remained because of the falling rupee and protests seeking early elections.

The highest increase was recorded in share prices of Colgate Palm, which rose Rs47.99 to Rs2,199.99 per share, followed by Mari Petroleum that increased Rs26.41 to Rs1,612.99 per share.

A major decline was noted in share prices of Rafhan Maize, which fell Rs200 to Rs9,600 per share, followed by Sapphire Fiber that dropped Rs81.78 to Rs1,011.01 per share.

Muhammad Waqar Iqbal, an analyst at JS Research, said the market opened in the negative zone over concerns over the PTI protests agaisnt the government.

Investors vigilantly followed the news on the political front. “In the upcoming days the market direction is likely to depend on economic clarity on IMF talks and the government decision on petroleum prices. It is advised to stay sideline for now,” he said.

Pakistan Refinery led the volumes chart with 21.238 million shares. The stock closed higher by 90 paisas to Rs16.64 per share.

It was followed by K-Electric Ltd with 15.143 million shares. The power company rose by 2 paisas to Rs2.52 per share.

Other stocks that recorded significant turnover included WorldCall Telecom, Cnergyico PK, Ghani Global Holding, Unity Foods Ltd, TPL Properties, Maple Leaf, Telecard Limited and Silk Bank Ltd.