Stocks close higher on corporate buybacks

Stocks closed higher on Friday amid corporate share buybacks and hopes for a positive response from the International Monetary Fund (IMF) on the 9th review, traders said.

Pakistan Stock Exchange (PSX) benchmark KSE 100-share index increased 0.30 percent or 121.72 points to close at 41,301.48 points against 41,179.76 points recorded in the last session. Intraday high was 41,393.91 points, while intraday low was 41,087.59 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks showed recovery led by selected scrips across the board on the back of corporate share buybacks and IMF affirmation on productive discussion with respect to 9th review.”

The Asian Development Bank approval of $775 million financing, rupee stability and government decision to slash petroleum, oil and lubricant prices to ease industrial strain played a catalytic role in the positive close, Mehanti added.

KSE-30 index went up 0.17 percent or 26.55 points to close at 15,241.80 points compared with 15,215.25 points recorded in the last session.

Traded shares decreased by 106 million shares to 139.659 million shares from 245.017 million shares previously. The trading value dropped to Rs4.167 billion from Rs7.595 billion. Market capital expanded to Rs6.564 trillion from Rs6.544 trillion. Out of 330 companies active in the session, 124 closed in green, 185 in red and 21 remained unchanged.

Nabeel Haroon, an analyst at Topline Securities, said a range-bound session was observed at the exchange as the index traded between its intraday high of 122 points and intraday low of -92 points, to finally close at 41,301 level (up 0.3 percent).

A major contribution to the index came from Systems Limited, Pakistan Services, Pakistan Petroleum Limited, Kapco and Engro Fertilizer, as they cumulatively contributed 153 points to the index. On the flip side, Millat Tractors, Dawood Hercules, Bank Al Habib, Engro and United Bank lost value to weigh down on the index by 64 points.

The highest increase was recorded in shares of Unilever Foods, up Rs1,000 to close at Rs25,000/share, followed by Pak Services, up Rs100 to close at Rs1,450/share. A significant decline was noted in the shares of Mehmood Tex, down Rs28 to end at Rs860/share, followed by Bhanero Tex, down Rs17.72 to end at Rs1,125/share.

Brokerage Arif Habib Ltd said the week closed off with a mixed session on the last business day. The market opened in the negative zone continuing the momentum from the previous close; however, it traded both ways and closed negative at the end of the first session, it reported. The session resumed in the green zone, trading in the same range after much-needed political clarity provided some relief to the investors.

Volumes recorded in the mainboard were decent as 3rd tier stocks continued to be the volume leaders.

Sectors contributing to the performance included technology and communication (+57.6 points), miscellaneous (+52.2 points), E&Ps (+32.1 points), cements (+13.0 points) and fertilisers (+12.3 points).

Bank Al-Falah remained the volume leader with 17.468 million shares that increased by 6 paisas to Rs30.75 per share. It was followed by WorldCall Telecom with 12.449 million shares that closed lower by 2 paisas to Rs1.27 per share.

Other stocks that recorded significant turnover included Dewan Motors, Dewan Farooque Sp, Hascol Petrol, Unity Foods Ltd, TPL Properties, Cnergyico PK, Kohinoor Spining and Sui North Gas Pipeline Limited.

Shares’ turnover in the future contracts decreased to 20.268 million shares from 33.969 million shares recorded previously.