Stocks marginally higher as profit-taking weighs

Stocks on Friday ended higher with decent gains as late profit-taking eroded early gains, while consistent rupee recovery stoked hopes that the economy was somewhat back on track, traders said.

Pakistan Stock Exchange's (PSX) benchmark KSE-100 Shares Index closed higher by 117.11 points or 0.25 percent to 46,601.54 points after touching a day high of 46,785.34 and a low of 46,484.43 points.

Zafar Moti, a former director PSX, said Friday’s session was connected to the weekly performance of the bourse.

“After two years a five percent increase has been recorded in this week.

Every sector, that had been lacklustre and directionless, has improved, while cement, energy, and others also got a leg up,” the former PSX director said.

He said with the end of the political crisis and the recovery of rupee, the market also absorbed the huge interest rate increase.

“Stocks are likely to perform well throughout Ramazan due to positive news,” he said.

Arif Habib Corp’s Ahsan Mehanti attributed this performance to speculations over the possible revival of the IMF programme, a surge in global crude oil prices, and $2.8 billion record remittances in March 2022.

Upbeat data on LSM (Large-Scale Manufacturing) growth that rose 8.4 percent year-on-year in February 2022 and rupee stability did their trick to keep stocks buoyant, Mehanti said.

The Pakistan Bureau of Statistics Friday reported that over the previous month, the large industries’ output increased by 0.3 percent in Feb 2022. LSM accounts for 80 percent of the country’s manufacturing sector.

These calculations are made considering fiscal year 2015/16 as the base year.

KSE-30 Shares Index ended flat with a gain of just 6.61 points or 0.04 percent to close at 17,906.20 points.

Trade volume, however, fell 129 million shares to 365.78 million from 494.94 million, while value dropped to Rs9.130 billion from Rs11.680 billion. Turnover in the futures’ contracts decreased to 97.52 million shares from 141.40 million shares.

Market capital expanded to Rs7.757 trillion from Rs7.737 trillion. Out of 335 companies active in the session, 161 closed in green, 155 in red, while 19 remained unchanged.

JS Research in note recommended investors to sell on strength around 47,000 points level and wait for major dips for fresh buying positions.

Sapphire Textile was the top gainer of the day as it rose by Rs71.17 to Rs1,073.67/share, followed by Sapphire Fiber, up Rs65.78 to Rs959.78/share.

Blessed Textile fell Rs15 to Rs500/share to emerge as the worst loser of the day, while Otsuka Pakistan, the second biggest loser, shed Rs13.25 to close at Rs238.75/share.

Arif Habib Ltd in its daily market report said mainboard activity was dull but hefty volumes were recorded in 3rd tier stocks.

In the last trading hour, profit-taking, especially in the refinery sector, pared some early gains,” the brokerage reported.

Sectors that supported the index included fertiliser (45.7 points), banks (37.9 points), energy (22.3 points), and investment banks (+14.7 points), and refineries (+11.6 points).

Cnergyico PK was the highest traded stock as it registered a turnover of 71.32 million shares. It was followed by WorldCall Telecom that saw a trade of 31.65 million shares.

Major turnover-makers Ghani Global Holding, Pakistan Refinery, Maple Leaf, Fauji Foods Ltd XD, Hum Network, G3 Technologies, Telecard Limited, and Flying Cement.