Pakistan stocks recover; Index gains 53.73 points

KARACHI: Massive volatility was witnessed at the bourse in the initial trading hours on account of rumours regarding foreign selling in key sectors. However, recovery was seen in cement stocks, which led the market to fly from negative to positive zone, dealers said on Tuesday.

“Rumours regarding civil-military disturbed relationship also subsided, while relief in the power tariff from the IMF is also likely to be unified,” an analyst at Pearl Securities said.

The Pakistan Stock Exchange KSE-100 shares index gained 0.12 per cent, or 53.73 points, to close at 43,883.08 points. The KSE-30 shares index shed 0.07 per cent, or 12.55 points, to close at 17,217 points.

As many as 535 scrips were active, of which 217 advanced, 302 declined and 16 remained unchanged. The ready market volumes stood at 404.9 million shares, compared with the turnover of 226.57 million shares in the last trading session.

Ahsan Mehanti at Arif Habib Corporation said that the stocks showed recovery led by selected scrips across-the-board ahead of the quarter-end financial results.

“Speculations on likely release of $1 billion IMF EFF this month, approval of $3.6 billion Saudi deferred payment facility and surging global crude oil prices played a catalytic role in the bullish close.”

An analyst at Topline Securities said the KSE-100 index witnessed a volatile session. “Sentiments remained choppy as the delay in the ISI chief notification kept the investors cautious. Moreover, higher international oil prices kept the concerns alive over inflationary pressures and further monetary tightening by the SBP.”

The commercial banks continued to see investors’ interest, as the sector closed up on an average 2.2 per cent for the day.

Going forward, analysts recommend investors to adopt the sell on strength stance in the coming days.

The companies, which reflected the highest gains included Sapphire Textile, up Rs40 to close at Rs1,070/share; and Abbott Laboratories, up Rs19.96 to close at Rs777.96/share.

The companies that reflected the most losses included Wyeth Pakistan, down Rs42.4 to close at Rs1,607.6/share; and Pakistan Tobacco, down Rs42.33 to close at Rs1,149.67/share.

The highest volumes were witnessed in WorldCall Telecom with a turnover of 51.14 million shares. The scrip shed four paisas to close at Rs2.21/share; followed by Telecard Limited with a turnover of 27.58 million shares. It shed 72 paisas to close at Rs16.55/share. Treet Corporation remained the third with a turnover of 21.77 million shares. It shed Rs4.02 to finish at Rs49.64.