Pakistan stocks manage to close bullish despite selling pressure

Web DeskWeb Editor

14th Jul, 2021. 07:28 pm
Pakistan Stocks Exchange

KARACHI: Pakistan stocks managed to close in the green zone on Wednesday, despite facing selling pressure, amid rising Covid cases, while investors were hesitant to take new positions ahead of the Eid holidays and results season.

An analyst at Arif Habib Limited said the market remained range-bound, oscillating between -38 points and +114 points.

“Large cap blue-chip stocks kept the index balanced, which was otherwise under selling pressure in E&P, cement, steel and technology sectors.

“Worsening situation at Afghanistan border and imposition of the Covid lockdown in Sindh made the investors rethink portfolio positions, in addition to facing CGT [capital gains tax] liability to be settled by July 16.”

The Pakistan Stock Exchange KSE-100 shares index gained 0.02 per cent, or 10.97 points, to close at 47,491.47 points. The KSE-30 shares index shed 0.17 per cent, or 32 points, to close at 19,045.66 points.

As many as 435 scrips were active, of which 172 advanced, 243 declined and 20 remained unchanged. The ready market volumes stood at 508.28 million shares, compared with the turnover of 496.82 million shares in the last trading session.

Ahsan Mehanti at Arif Habib Corp said the stocks closed flat, amid thin trade in the earnings season. “Surging global crude oil prices, reports of 22 per cent growth in banking deposits in FY21 and [the] LSM [Large-scale Manufacturing] growth of 14.57 per cent during July-May 2021 played a catalytic role in the positive close.”

Muhammad Mubashar at JS Global Capital said that the rising Covid cases and the lack of positive triggers resulted in the range-bound activity where market participants preferred to book profits on the higher side.

On the economic front, the LSM output increased 14.57 per cent during the 11 months of FY21. Moreover, the banking deposits recorded the highest growth in 14 years to reach Rs19.8 trillion as of June 2021. Car sales also jumped 57 per cent to 151,182 units during FY21.

“Going forward, we expect the range-bound activity to continue before [the] Eid holidays and recommend investors to avail of any downside as an opportunity to buy in the cement and textile sectors.”

The companies, which reflected the highest gains included Exide Pakistan, up Rs41.64 to close at Rs596.91/share; and Indus Motor Company, up Rs38.38 to close at Rs1,240.23/share.

The companies that reflected the most losses included Unilever Foods, down Rs121 to close at Rs16,349/share; and Philip Morris Pakistan, down Rs50.38 to end at Rs970.25/share.

The highest volumes were witnessed in WorldCall Telecom with a turnover of 44.69 million shares. The scrip shed 10 paisas to close at Rs3.42/share; followed by Ghani Global Glass with a turnover of 44.07 million shares. It gained Rs1.38 to close at Rs29.82/share. TPL Corp was the third with a turnover of 40.81 million shares. It gained Rs1.07 to finish at Rs23.79.

Adsense 300 x 250