Stocks on Wednesday ended tad higher as profit-selling in technology and refinery sectors overwhelmed an energy rally, whereas cements that succumbed to selling pressure after cartelisation reports also did a good deal of damage, dealers said.
Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index gained 0.25 percent or 109.35 points to close at 43,360.19 points level.
Volumes decreased to 433.020 million shares from 702.210 million on Tuesday. KSE-30 was 0.34 percent or 60.92 points up to end at 18,101.62 points level.
Topline Securities in a note said stocks moved in a range 372 points throughout the day. Cements turned out to be the major laggards on Wednesday following the news that CCP (Competition Commission of Pakistan) has reportedly found evidence against northern manufacturers’ involvement in cartelisation, the brokerage said.
The LUCK, MLCF, and DGKC cumulatively led to the loss of 59 points as a result, it said adding that major support to the index came from oil and gas exploration and production sector that closed 1.6 percent higher on strong world crude market.
Muhammad Saeed Khalid, head of research at Shajar Capital, said the index marked an intraday high of 43,557 points mainly on improving economic stability and strong oil industry numbers that boosted participation in the energy stocks.
He said investors remained net buyers in the tech stocks mainly on the strong fundamentals of the sector.
“Investors also accumulated in the textile and food stocks ahead of advance trade numbers expected to be announced later this week,” Khalid added.
Salman Ahmad, head of institutional sales at Aba Ali Habib Securities, said the index closed above 43,000 points which has been positive for the sentiment.
“Though, the index managed to close on a positive note, profit-taking hit refinery and technology shares, which during the recent recorded appreciable gains,” he said.
Ahmed said cement sector came under selling pressure after the market talk that CCP had issued notices to manufacturers over cartelisation.
“The overall outlook remains positive and the index is likely to remain in the positive zone because of expected rise in crude oil prices,” Ahmed added.
Trading activity was recorded in 403 scrips, of which 171 moved up, 212 down, and 20 remained unchanged.
Ahsan Mehanti from Arif Habib Corporation, said stocks closes higher as investors weighed a rise in global equities and crude oil prices".
Mid-session pressure remained due to political uncertainty,
concerns for likely CCP action against cement sector cartelisation and higher local power tariff, he said.
Upbeat remittances, reports of high daily receipts in Roshan Digital Account Stocks, Moody’s upgrading the blue chip banks, and ADB report on likely improved economic growth helped the stocks end in positive zone, Mehanti added.
Colgate Palmolive, up Rs47 to close at Rs2,897/share, and Gatron Industries, strengthening by Rs43.23 to finish at Rs619.74/share were the top gainers of the day. Sapphire Fibre, down Rs55 to close at Rs940/share, and Ismail Industries, losing Rs23.99 to close at Rs381.01/share, were the worst losers.
TRG Pakistan Limited posted highest volumes (29.137 million shares) and gained Rs0.4 to end at Rs73.95/share, while Pakistan Elektron posted the lowest (11.840 million), but gained Rs0.49 to end at Rs36.92/share.
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