Stocks rise tracking oil, regional peers

Stocks continued winning streak on Tuesday as energy shares tracked gains in global oil prices, while technology and cement scripts also supported the bullish market, dealers said.

An analyst at Arif Habib Limited said oil and gas marketing companies bore selling pressure on the news of cancellation of operating licenses and probe by government, whereas E&P sector responded positively to the increase in international crude oil prices.

“Cement sector also performed in the expectation of an increase in cement prices. Technology sector stocks led the index today with across the board strong price performance, particularly from Netsol, Worldcall Telecom and Systems Limited.”

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index gained 0.44 percent or 203.55 points to close at 46,300.66 points. KSE-30 shares index gained 0.63 percent or 117.68 points to close at 18,898.19 points.

As many as 418 scrips were active of which 232 advanced, 169 declined and 17 remained unchanged.

The ready market volumes stood at 677.38 million shares compared with the turnover of 766.64 million shares in the last trading session.

On the political front, Pakistan and US have agreed to advance practical cooperation on matters of mutual interest, bilateral ties, and regional issues. Despite the positive inflows, volatility was somewhat observed at the bourses.

Ahsan Mehanti at Arif Habib Corp said stocks closed higher amid higher trades as investors weighed Moody’s robust review on economic growth potential and government’s estimated growth data of 3.94 percent in FY21.

“Higher global crude oil prices and speculations ahead of monetary policy announcement this week played a catalytic role in the bullish close.”

An analyst at JS Global Capital said KSE 100 maintained its bullish momentum throughout the day and closed with a gain of 204 points at 46,301 level after touching a high of 46,369.

“Honda Cars (HCAR) shed 1.3 percent from the automobile sector, reported a cash payout of Rs4.52 per share and an EPS of Rs12.56 for the full year as against earnings of Rs4.77 per share in the previous year. The market finally closed above the 46,300 level after a long time which is a positive sign,” the analyst said.

“The bullish momentum can continue in the coming days and investors are advised to view any dips as buying opportunities in the banking and cement sector stocks trading at discounts,” the JS Global Capital analyst advised.

Companies reflecting highest gains included Wyeth Pakistan, up Rs128.62 to close at Rs1,843.58/share, and Bata Pakistan, up Rs71.94 to close at Rs1,699/share.

Companies reflecting most losses included Colgate Palmolive, down Rs180.99 to close at Rs2,813.01/share, and Rafhan Maize, down Rs125 to end at Rs9,500/share.

Highest volumes were witnessed in Worldcall Telecom with a turnover of 150.34 million shares. The scrip gained 14 paisas to close at Rs2.28 share. Unity Foods was second with a turnover of 66.83 million shares. It gained Rs2.42 to close at Rs43.68/share.

Telecard Limited was third with a turnover of 37.67 million shares. It gained Rs1.22 to finish at Rs17.53.