PSX recovers losses on buying in blue-chips

Pakistan stocks recouped losses on Tuesday with the benchmark index closing almost one percent up as institutional investors took fresh positions at oil, financial and cement counters, dealers said.

The Pakistan Stock Exchange’s (PSX) benchmark 100-share Index closed higher 329.78 points, or 0.95 percent, to 34,897.30 points. The highest index of the day remained at 34,922.21 points while the lowest level of the day was recorded at 34,473.89 points.

KSE 30-share Index increased 242.82 points, or 1.21 percent, to 20,317.34 points.

Turnover rose 12 million shares to 197.75 million shares, trading value went up to Rs9.22 billion as against Rs7.04 billion and market capital improved to Rs7.23 trillion as compared to Rs7.17 trillion. Of a total of 347 companies active in the session, 171 closed up, 154 ended down while 22 remained unchanged.

Ahsan Mehanti, an analyst at Arif Habib Corp said bullish activity witnessed in the post-earning season, led by blue-chip oil, cement and banking scrips.

Stalled foreign outflows and inflation reading invited fresh institutional interest and investors overlooked major fall in global equities and crude prices.

Oil and Gas Development Company (up five percent) hit the upper price limit and traded highest volumes in the last six years on reports of foreign selling and buying by locals on possible addition of stock to Shariah-compliant list. Moreover, Pakistan Telecom closed up 3.7 percent on foreign institutional buying.   

Faisal Bilwani, an analyst at Elixir Securities said the equities resumed its rally after Monday’s breather to close a stone's throw away from key 35,000-level.

“With key resistance level of 35,000 not far, we see local institutional activity to push benchmark to test new recent highs,” Bilwani said. “Expect politics to remain a dampener in days ahead while market is to remain flows driven and sensitive to global commodity prices particularly crude.”

Highest increase was recorded in shares of Nestle Pak XD by Rs143.80 to Rs7,333.80/share, followed by Bata (Pak) XD that rose Rs65 to Rs3,370/share. Major decrease was noted in shares of Philip Morris Pak by Rs42.81 to Rs1,658/share, followed by Island Textile that fell Rs32.13 to Rs800/share.

Significant turnover was recorded in stocks of Bank of Punjab, Pakistan Telecommunication Company Limited XD, Oil and Gas Development Company Limited, Dewan Motors, K-Electric Ltd, TRG Pak Ltd, Byco Petroleum, Sui Northern Gas Pipeline Limited, Jahangir Siddiqui Co and Pak Elektron.

Bank of Punjab remained the volume leader with 21.91 million shares with a decline of 26 paisas to Rs9.04/share. It was followed by PTCL XD with 16.87 million shares with an increase of 53 paisas to Rs14.81/share.

Shares’ turnover in the future contracts increased to 38.14 million shares from 37.74 million shares traded in the previous session.