Pakistan stock market remains bullish; index gains 532.86 points

Staff Reporter BOL News

30th Sep, 2021. 07:44 pm
KSE-

Photo: File

KARACHI: The Pakistan equity market witnessed a sharp recovery on Thursday, as investors opted for bottom fishing in the oversold market, dealers said.

Ahsan Mehanti at Arif Habib Corporation said that the stocks showed sharp recovery led by scrips across-the-board at the quarter-end close on strong earnings outlook.

“[The] higher global crude oil prices and speculations on the likely release of $1 billion IMF EFF next week played a catalytic role in the bullish close.”

Maaz Mulla at JS Global Capital said that the rollercoaster ride continued at the Pakistan Stock Exchange (PSX), where the index made an intraday high and a low of 44,900 and 43,972, respectively, to close at 44,900 (+533 points).

“[The] cement sector recovered where Fauji Cement gained 5.6 per cent, Cherat Cement went up 4.9 per cent, D G Khan Cement, up 6 per cent, Pioneer Cement surged 5.2 per cent and Maple Leaf Cement went up 4.5 per cent were the major movers of the sector.

The Oil and Gas Development Company surged 2.7 per cent, Pakistan Oilfields up 2.2 per cent and Pakistan Petroleum Limited gained 3.3 per cent to close higher, as crude oil prices edged higher in the international market.

“Going forward, we recommend investors to adopt a buy-on-dips strategy in the banking, steel and textile sectors.”

The Pakistan Stock Exchange KSE-100 shares index gained 1.2 per cent, or 532.86 points, to close at 44,899.60 points. The KSE-30 shares index gained 1.17 per cent, or 204 points, to close at 17,660.61 points.

As many as 557 scrips were active, of which 385 advanced, 157 declined and 15 remained unchanged. The ready market volumes stood at 372.4 million shares, compared with the turnover of 468.7 million shares in the last trading session.

The companies, which reflected the highest gains included Nestle Pakistan, up Rs308.13 to close at Rs6,035.8/share; and Bata Pakistan, up Rs109.84 to close at Rs1,1773.41/share.

The companies that reflected the most losses included Colgate Palmolive, down Rs113.89 to close at Rs2,207.11/share; and Philip Morris Pakistan, down Rs35.69 to close at Rs764.31/share.

The highest volumes were witnessed in K-Electric Limited with a turnover of 32.48 million shares. The scrip gained 69 paisas to close at Rs4/share; followed by Byco Petroleum with a turnover of 29.76 million shares. It gained 45 paisas to close at Rs8.18/share. Azgard Nine remained the third with a turnover of 20.82 million shares. It gained Rs1.17 to finish at Rs20.15.

Meanwhile, during the first quarter of FY21, the KSE-100 index ended with a loss of 189 per cent, or 2,456 points, on a quarterly basis to close at 44,900 level.

The All-share average traded volume during the quarter stood at 412 million shares, down 38 per cent, compared with 669 million shares in the previous quarter.

During the first quarter of FY22, the market witnessed bearish trading sessions, which was primarily led by the Taliban’s takeover of Afghanistan after 20 years.

The US general had said that Pakistan-Taliban ties were to become more complicated after the US withdrawal, MSCI downgrade to the Frontier Markets after four years, and the Asia-Pacific Group (APG) improved Pakistan’s rating after fulfilling 35 of the 40 recommendations of the Financial Action Task Force.

Concerns remained over the Federal Reserve meeting and Evergrande issue, approval of Pakistan Oil Refinery Policy 2021, central bank raising the interest rate by 25bps to 7.25 per cent and massive rise in the international commodity prices.

Going forward, analysts expect the market to take direction from the IMF programme review in the upcoming month.

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