Stocks

KARACHI: Stocks staged a strong come back on Monday with benchmark index surging 2.18 percent amid strong corporate results and declining Covid cases, dealers said.

An analyst at Pearl Securities said despite the prevailing uncertainty regarding Covid cases and the related lock-down, benchmark index started the roll over week on a positive note primarily supported by the index heavy weights.

“Market rumors suggest heavy buying from the big pension fund and a likely rate cut to counter the negative impact on Corona Virus”.

Pakistan stock exchange (PSX) KSE-100 shares index gained 2.18 percent or 976.01 points to close at 45,682.77 points. KSE-30 shares index gained 2.85 percent or 520.83 points to close at 18,797.30 points.

As many as 397 scrips were active of which 211 advanced, 170 declined and 16 remained unchanged.

The ready market volumes stood at 409.08 million shares compared with the turnover of 240.48 million shares in the last trading session.

Ahsan Mehanti at Arif Habib Corp said stocks recovered sharply led by scrips across the board as investor weighed strong financial results in oil, banking and fertilizer sectors.

“Reports of over $1 billion receipts in Roshan Pakistan Digital accounts and higher global crude prices played a catalytic role in bullish close in the earnings season”.

A.A.H Soomro at KASB Securities said stocks had a great rally as several factors contributed to the bullishness. “Decline in infection rate over the weekend, imposing of stricter lockdown measures by calling the Army for implementation and rumored extra funds with asset managers brought across the board rally. Therefore, the index witnessed positivity in heavy sectors including banks, oil exploration, cements and technology as well”.

Going forward analysts believe the direction of Covid cases and successful implementation of SOPs will guide the market sentiment.

“Otherwise, positivity would be short lived as earnings season conclude this week. We expect flattish to positive trend for the week to continue as investors reassess their portfolios in response to earnings season,” Soomro added.

An analyst at Arif Habib Limited said market made a rebound with the anticipation of new fund injection by mutual funds, despite the persistent selling witnessed in the past couple of sessions at the behest of rising Covid cases.

“Financials results announced earlier today failed to excite the market, when the index tumbled 317 points earlier in the session. Aggressive buying was observed in Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL) and Pakistan State Oil (PSO), all of which hit upper circuits during the session”.

Similarly, buying was observed in Habib Bank (HBL) and United Bank (UBL).

Companies reflecting highest gains include Abbot Laboratories up Rs48.96 to close at Rs779.98/share and Nestle Pakistan up Rs40 to close at Rs5,750/share.

Companies reflecting most losses include Sapphire Textile down Rs71.36 to close at Rs898.63/share and Mehmood Textile down Rs35.08 to end at Rs455/share.

Highest volumes were witnessed in Telecard Limited with a turnover of 55.04 million shares. The scrip shed Rs1.03 to close at Rs14.99/share. TRG Pakistan was second with a turnover of 54.62 million shares. It gained Rs5.52 to close at Rs181.69/share. Unity Foods was third with a turnover of 26.43 million shares. It gained 64 paisas to finish at Rs31.51.

Highlights:

Net change 976.01 (up)

Percent change 2.18 percent

Closing 45,682.77

Opening 44,706.76

Intraday high 45,951.35

Intraday low 44,386.16

Total turnover 409.08mln

Market capitalization Rs7.9trln

Major gainers 211

Major losers 170

KSE-30 Index 18,797.30

Percentage change 2.85

KSE-All Share Index 30,845.99

Percentage change 1.82

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