Stocks inch up on value-hunting in volatile trade

Stocks on Wednesday ended positive as tempting valuations saved the day marked by volatile trade amid jitters over IMF-projected grim economic outlook and a stewing political crisis, dealers said.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index gained 0.34 percent or 137.61 points to close at 40,144.29 points, while volumes decreased to 232.803 million shares, compared with the turnover of 290.136 million shares in the previous session.

Topline Securities in its daily market review said, “Local equities ended higher in a volatile session. After positive opening the benchmark index traded in a range of 330 points amid thin volumes”. “Calls for public rallies by PDM as part of its anti-government drive, FATF preliminary session due next week, and upcoming result season led the investors to remain hesitant,” the brokerage report said.

KSE-30 shares index tracked the benchmark to gain 0.16 percent or 26.62 points to end at 16,943.19 points.

Tahir Abbas, director research at Arif Habib Limited, said, “The market ended on positive note mainly because of the attractive valuations following a healthy correction, which allowed the market to stage a recovery on technical grounds”.

“The market also rallied on expectations of better quarter-on-quarter financial results,” Abbas added.

Trading activity was recorded in 408 active scrips, of which 286 gained, 108 lost, and 14 ended neutral.

Analyst Ahsan Mehanti from Arif Habib Corporation said, “Stocks showed recovery amid surging global crude oil prices and speculations in the earnings season.

Mid-session pressure remained on political noise, uncertainty over FATF decision on Pakistan,

and concerns regarding IMF warnings over subdued growth, and higher current account deficit for FY21.

“Strong data on cement and auto sales for September 2020, rupee stability, and upbeat data on remittances for September contributed to a bullish close,” Mehanti added.

Muhammad Saeed Khalid, head of research at Shajar Capital, said, “Following the announcement of a reduction in the prices of wheat, the sentiments in the stock market recovered to positive later during the day”.

The benchmark index remained sluggish earlier during the day, marking a low of 161 points mainly on the projection of stagflation in Pakistan by the IMF for the year FY21, he said.

“Uncertainty ran high over the simmering political scenario as the Ulma-e-Haq of Pakistan has called for a countrywide strike on Friday to protest against the killing of Shaheed Maulana Adil Khan,” Khalid added.

Island Textile, up Rs66.95 to close at Rs959.70/share, and Bhanero Textile, up Rs41.01 to finish at Rs999.99/share, were the top gainers, while Phillip Morris Pakistan, down Rs99.28 to close at Rs1,600/share, and Sapphire Textile, losing Rs50.01 to close at Rs730/share, were the top losers of the day.

Hascol Petrol, up Rs0.29 to end at Rs15.78/share, was the volume leader with 24.029 million shares, whereas Kot Addu Power, up Rs0.59 to end at Rs26.84/share, recorded the thinnest turnover with 5.409 million shares.