Triggered by rupee free fall, the market was range-bound on Wednesday, recovering slightly on assurances given by the finance minister on International Monetary Fund (IMF) inflows, dealers said.
Pakistan Stock Exchange (PSX) benchmark KSE 100-share index inched up 0.2 percent or 78.59 points to close at 39,972.64 points compared to 39,894.05 points recorded in the last session. Intraday high was 40,098.82 points, while the lowest level of the day was recorded at 39,605.83 points.
Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks showed recovery in the earnings season rally at PSX on easing political noise and FM assurance on IMF inflows, current account surplus in July 2022 and Fitch and Moody’s rating expectation on securing $1.2 billion bailout fund easing pressure on currency and bonds.”
Reports of surging textile group exports and higher global crude oil prices played a catalytic role in a positive close, he said. However, “Mid-session pressure remained on the falling rupee.”
KSE-30 index also increased 0.18 percent or 27.06 points to end at 15,158.09 points compared with 15,131.03 points recorded in the last session.
Trade in shares fell by 10 million to 121.575 million shares from 131.861 million shares previously. The trading value decreased to Rs4.149 billion from Rs4.205 billion. Market capital expanded to Rs6.751 trillion from Rs6.743 trillion. Out of 321 companies active in the session, 153 closed in green, 141 in red while 27 remained unchanged.
Analyst Waqar Iqbal at JS Research said the KSE-100 remained volatile due to fears of further currency depreciation and news related to political tensions in Punjab. “We recommend investors to stay cautious at these levels,” he said.
A report of Topline Securities said that range-bound activity was witnessed at the bourse, with market closing slightly positive.
Investors’ interest was mostly witnessed in Engro Polymer and Chemicals and Lotte Chemicals, where EPCL closed at its upper circuit and Lotte closed 5.56 percent higher.
The highest increase was recorded in shares of Rafhan Maize, which rose by Rs110 to close at Rs11,100/share, followed by Premium Tex, which increased by Rs50.57 to close at Rs726.90/share.
A significant decline was noted in shares of Bata Pakistan, which fell by Rs141.58 to end the session at Rs2,022/share, followed by Nestle Pakistan, which decreased by Rs108.13 to close at Rs5,890/share.
Arif Habib Ltd, in its post-session market analysis, said the PSX continued to remain under pressure throughout the day due to concerns regarding the uncertain economic situation. “Benchmark KSE-100 index witnessed a volatile session as investors opted to remain sideways” on account of rupee’s continued “free fall against the US dollar”.
“Mainboard volumes remained dry whereas decent volumes were observed in the 3rd-tier stocks,” it reported.
Banks contributed 76.9 points, chemicals 54.2 points, technology 27.5 points, engineering 14.4 points, and cement 10.1 points.
Lotte Chemical remained the volume leader with 10.211 million shares traded. Its scrip increased by Rs1.50 to close at Rs28.50/share. It was followed by WorldCall Telecom with 9.264 million shares that closed lower by 2 paisa to end at Rs1.18/share.
Other stocks that recorded significant turnover included TPL Properties, Cnergyico, Unity Foods, Pak Refinery, Engro Polymer, Fauji Foods, TRG Pak, and K-Electric.
Shares’ turnover in the future contracts increased to 168.412 million shares from 163.787 million shares in the last session.
