Stocks recoup losses on earnings excitement

Stocks recovered losses on Thursday as bulls roared back to place bets on the select names ahead of earnings season, sending the benchmark index up more than half a percent, dealers said.

Analyst Ahsan Mehanti at Arif Habib Corp said stocks closed the all-time high, led by selected cement, oil and auto stocks. Foreign inflows, a likely upward revision in power tariffs and falling yen value played a catalyst role, Mehanti said.   

The Pakistan Stock Exchange’s benchmark 100-share Index closed up 0.53 percent or 208.00 points to 39,306.79 points. The highest index of the day was 39,391.69 points while the lowest level of the day was recorded at 39,098.79 points.

KSE 30-share Index also increased 0.37 percent or 84.37 points to 22,774.52 points. Turnover increased 11 million shares to 233.82 million shares. Trading value rose to Rs15.29 billion from Rs14.56 billion and market capital expanded to Rs7.85 trillion from Rs7.82 trillion. Of a total of 349 companies, 198 ended up, 128 closed down and 23 remained unchanged.

Analyst Ali Raza at Elixir Securities said equities resisted the recent trend and inched up on the gains in the select index names. The day kicked off on a positive note in line with regional markets.

“We expect the current momentum to gather pace in days ahead with institutional flows and corporate earnings season likely driving wider market to re-test the recent highs,” said Raza. 

Lucky Cement was up 2.5 percent. It crossed the Rs700/share mark for the first time, contributing most points to the index. Pak Electron was up 4.7 percent and closed at its upper price limit after topping the volumes chart and contributing the second most points. Investors bet on the company's prospects of obtaining smart metering contract.

Engro Fertilizers (up 2.1 percent) maintained its upward ride for the third consecutive session and landed among the top three traded shares.

Highest increase was recorded in Bata (Pak). Its share value rose Rs120.10 to Rs4,000.10/share followed by Unilever Foods that was up Rs48 to Rs5,200/share. Major decrease was recorded in Rafhan Maize. Its share price fell Rs181.03 to Rs7,118.97/share, followed by Nestle Pak that was down Rs100 to Rs7,425/share.

Significant turnover was recorded in stocks of Pak Elektron, Dewan Motors, Engro Fertilizers, Sui Southern Gas Company, Sui Northern Gas Pipeline Limited, Agritech Limited, Hi-Tech Lubricants, K-Electric Ltd, Pakistan Telecommunication Company Limited and Pak Int. Bulk.

Pak Elektron remained the volume leader with 22.84 million shares with an increase of Rs3.09 to Rs69.44/share. It was followed by Dewan Motors with 15.10 million shares with an increase of 99 paisas to Rs18.48/share. Shares’ turnover in the future contracts increased to 44.31 million shares from 40.67 million shares traded in the previous session.