Stocks gain 300 points on institutional buying

Stocks closed positive on Thursday as buying from financial institutions such as banks and mutual funds helped improve the sentiment of the domestic investors, dealers said.

Analyst Ahsan Mehanti from Arif Habib Corporation said, “Stocks closed bullish amid higher trades on investor speculations in oil stocks ahead of government approval on OGRA (Oil and Gas Regulatory Authority) proposal for revision in local POL prices.”

The approval from the Economic Coordination Committee (ECC) for extending the Prime Minister export-package for the next three year, upbeat provisional data on cement sales in April 2018, and surge in global crude oil prices played a catalytic role in the bullish close, the analyst added.

As the country is heading towards the second democratic transition, hopes are high that the caretaker government will hold timely elections, bringing in some fresh investments in local equities, dealers said.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index rose 0.71 percent or 300.16 points to close at 42,846.64 points. KSE-30 shares index rose 0.89 percent or 185.44 points to end at 21,021.08 points.

As many as 352 scrips were active, of which 190 went up, 139 fell, and 23 remained unchanged. Ready market volumes stood at 142.62 billion shares compared to a turnover of 133.73 billion shares in the last session.

An analyst from Habib Metro Financial Service said stocks rebounded and recovered their losses after closing the day by 300 points. “On the economic front, market anticipates the monthly inflation to reach around 4.7 percent, amid mounting external pressures,” the analyst said.

The market started directionless, but buying from financial institutions helped improve the sentiments; however, continuous selling by foreign fund houses remained a key concern for the market observers.

Companies with the highest gains were Philip Morris Pakistan, up Rs129.46 to close at Rs3,129.46/share, and Colgate Palmolive, up Rs60.00 to close at Rs3,000.00/share.

Stocks that booked the most losses were Unilever Foods, down Rs413.20 to close at Rs7,850.85/share, and Rafhan Maize, down Rs150.00 to close at Rs7,900.00/share.

Pakistan Elektron recorded the highest volumes with a turnover of 13.909 million shares. The script gained Rs0.42 to close at Rs38.50/share. It was followed by TRG Pakistan Limited with a turnover of 11.663 million shares. Its scrip gained Rs0.15 to close at Rs28.78/share.

The lowest volumes were witnessed in Pakistan International Bulk, with a turnover of 11.813 million shares, whereas its scrip lost Rs0.5 to close at Rs13.06/share.