Equity market recovers slightly amid profit-taking

Javed MirzaWeb Editor

29th Jun, 2021. 08:01 pm
Equity market

KARACHI: The Pakistan Stock Exchange (PSX) recovered slightly on Tuesday amid profit-taking in the later part of the day on the year-end phenomenon, dealers said on Tuesday.

The stock market started the day on a positive note, as the National Assembly passed the Finance Bill with a majority vote and the World Bank announced to provide $800 million for the power sector reforms.

An analyst at Arif Habib Limited said the market traded positive with the expectation of approval of the Federal Budget from the parliament. “Since the beginning of the session, the index moved up and gained 300 points in a few minutes. [The] E&P sector saw heavy selling, realising a decline in [the] price below [the] last closing.”

The Pakistan Stock Exchange KSE-100 shares index gained 0.29 per cent, or 135.42 points, to close at 47,137.77 points. The KSE-30 shares index gained 0.2 per cent, or 37.07 points, to close at 18,910.11 points.

As many as 406 scrips were active, of which 248 advanced, 131 declined and 27 remained unchanged. The ready market volumes stood at 580.76 million shares, compared with the turnover of 655.12 million shares in the last trading session.

Ahsan Mehanti at Arif Habib Corp said that the stocks showed recovery after the reports of the National Assembly passing the Federal Budget FY22 and the World Bank’s approval of $800 million for power sector reforms.

“[The] higher global crude oil prices, rupee stability and over $1.5 billion record receipts in [the] Roshan Digital Accounts played a catalytic role in the positive close.”

Maaz Mulla at JS Global Capital said that the bulls made a comeback, as the KSE-100 gained 506 points in the intraday trading; however, lost strength due to profit-taking.

Recovery was witnessed in the cement, banking and steel sectors where Flying Cement gained 3 per cent; Pioneer Cement, went up 2.1 per cent; Lucky Cement gained 0.4 per cent; MCB Bank Limited was up 0.2 per cent; Meezan Bank went up 2 per cent; Habib Bank Limited (HBL) surged 1.4 per cent; and International Steel gained 1.8 per cent.
The auto sector followed the same rising trend where Indus Motor surged 4 per cent, Pak Suzuki gained 1.1 per cent; and Honda Cars went up 1 per cent.

Going forward, analysts expect the market to behave in a similar trend and recommend investors to avail of any downside as a buying opportunity in steel, cement and refineries.

The companies that reflected the highest gains included Rafhan Maize, up Rs390 to close at Rs9,790/share; and Indus Motor Company, up Rs49.22 to close at Rs1,277.75/share.

The companies, which reflected the most losses included Colgate Palmolive, down Rs196.71 to close at Rs2,503.29/share; and Hinopak Motor, down Rs46.17 to end at Rs569.45/share.

The highest volumes were witnessed in SilkBank with a turnover of 69.19 million shares. The scrip gained 17 paisas to close at Rs2.06/share; followed by Hascol Petroleum with a turnover of 66.24 million shares. It shed 89 paisas to close at Rs8.81/share. WorldCall Telecom was the third with a turnover of 55.68 million shares. It gained 10 paisas to finish at Rs3.91.

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