Stocks edge up as investors hunt for value shares

Stocks eked out gains on Tuesday as investors picked up cyclical stocks on hopes of a quicker recovery from the current economic crisis, dealers said.

The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index gained 115.65 points or 0.29 percent to close at 40,191.61 points. The highest index of the day remained at 40,460.89 points while the lowest level of the day was recorded at 39,756.08 points. KSE-30 index also increased by 58.15 points or 0.38 percent to close at 15,247.84 points.

Traded shares rose by 107 million shares to 217.504 million shares from 110.422 million shares. The trading value increased to Rs6.326 billion from Rs3.718 billion. Market capital expanded to Rs6.796 trillion from Rs6.783 trillion. Out of 327 companies active in the session, 191 closed in green, 105 in red while 31 remained unchanged.

“Stocks showed recovery also rupee strength while positive reports on IMF bailout tranche after the government took prior actions to raise POL prices also helped buying sentiment,” a dealer said.

“Finance minister’s assurance over timely debt repayments and election commission decisions of prohibited political funding played catalytic role in positive close.”

However, midsession pressure remained on dismal data of fertilizer off take and 24.93 percent year on year higher inflation for July 2022.

Brokerage Topline Securities reported that equities closed on a slightly positive note. “Market opened on a negative note over ECP verdict on PTI funding which led the market to an intraday low of 313 points. However, the market recovered from its intraday low after the verdict and made an intraday high of 382 points.”

Investors’ interest mainly was witnessed in the fertilizer sector where EFERT, ENGRO and FFC closed higher. “Further, the ministry of industries has called a meeting of fertilizers manufacturing companies (due on Wednesday) to decide on a unified price of feed gas to streamline fertilizers production, the report said.

The highest increase was recorded in shares of Allawasaya Tex, which rose by Rs235.17 to Rs3,373.49 per share, followed by Colgate Palm, which increased by Rs161.20 to Rs2,310.66 per share.

A significant decline was noted in shares of Nestle Pakistan, which fell by Rs295.50 to Rs5,994.50 per share, followed by Sapphire Tex., which decreased by Rs80 to Rs993 per share.

In its post-session report, Arif Habib Ltd said the PSX observed a positive session as the Pak rupee continued to show resistance against the USD as further appreciation was witnessed. “Market opened in the negative zone but investors opted for value buying during the day resulting index to close in green. Mainboard activity remained decent although healthy volumes were observed in the 3rd tier stocks,” it reported.

Sectors contributing to the performance included fertilizer (+73.6 points), chemicals (+46.8 points), cement (+35.6 points), refinery (+10.5 points) and automobile assembler (+9.1 points).

TPL Properties remained the volume leader with 35.087 million shares that increased by Rs1.16 to Rs18.98 per share. It was followed by Agritech Limited with 22.626 million shares that closed higher by 52 paisas to Rs8.13 per share.

Other stocks that recorded significant turnover included Pak Refinery, Cnergyico PK, Ghani Glo Hol, Unity Foods Ltd, TRG Pak Ltd, Telecared Limited, Cordoba Logist and WorldCall Telecom.

Shares’ turnover in the future contracts increased to 80.364 million shares from 44.552 million shares.