Equities post slight gain as investors remain cautious

Javed MirzaWeb Editor

24th Jun, 2021. 10:09 pm
Equities post slight gain as investors remain cautious

KARACHI: The equity market closed in the green zone on Thursday, despite low investors’ sentiment, which was observed on the back of rollover week. In addition, the investors hesitated to take new positions, as they are waiting for the outcome of the Financial Action Task Force (FATF) meeting, which is to be announced on Friday.

An analyst at Arif Habib Limited said the market continued trading in a narrow range; whereby, investors kept booking profit post-budget announcement, especially in the rollover week.

“[The] banking sector stocks inched up, which helped the index prop up; however, selling pressure in technology, refinery, and cement sector stocks kept the upside of the index in check.”

The Pakistan Stock Exchange KSE-100 shares index gained 0.13 per cent, or 61.84 points, to close at 47,962.54 points. The KSE-30 shares index gained 0.2 per cent, or 39.22 points, to close at 19,298.60 points.

As many as 421 scrips were active, of which 207 advanced, 187 declined and 27 remained unchanged. The ready market volumes stood at 638.84 million shares, compared with the turnover of 619.11 million shares in the last trading session.

Maaz Mulla at JS Global Capital said the bulls made a comeback, as the market made an intraday high of 217 points; however, profit-taking was witnessed towards the end, as the market closed up 61 points only at 47,962 level.

The shares of Mari Petroleum Limited declined 0.1 per cent to close the trading in the red zone after Finance Minister Shaukat Tarin directed the Privatisation Commission and the Ministry of Petroleum to further examine the issue of divestment of government shares in the Mari Petroleum Limited and come up with a comprehensive proposal during the next Cabinet Committee on Privatisation (CCoP) meeting.

A rally in the cement stocks was witnessed, where Dewan Cement went up 3.7 per cent, Cherat Cement rose 1.8 per cent, Kohat Cement went up 1 per cent, Lucky Cement went up 0.4 per cent and Flying Cement increased 1.5 per cent to close in the green zone. The steel sector gained on the back of the rumours that the long steel manufacturers raised the prices of rebar by Rs5,000/tonne.
Moving forward, analysts expect volatility in the market due to the rollover week and recommend investors to avail of any downside as an opportunity to buy in the construction and export-oriented sectors.

The companies that reflected the highest gains included Island Textile, up Rs45 to close at Rs2,345/share; and Hinopak Motor, up Rs34.57 to close at Rs495.56/share.

Highest volumes were witnessed in WorldCall Telecom with a turnover of 97.54 million shares. The scrip shed 21 paisas to close at Rs3.65/share; followed by Pace Pakistan with a turnover of 35.66 million shares. It gained Re1/share to close at Rs6.85/share. Silk Bank was the third with a turnover of 33.77 million shares. It shed 13 paisas to finish at Rs1.79.

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