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Socks edge up, energy shares track rise in oil prices

Our Correspondent
Wednesday, Jul 27, 2022

Stocks ended flat on Tuesday but slightly on the higher side as investors opted to buy selected oil and banking scrips amid rupee depreciation and political noise, dealers said.

Pakistan Stock Exchange (PSX) benchmark KSE 100-share index inched up slightly by 0.13 percent or 50.03 points to close at 39,894.05 points against 39,844.02 points recorded in the last session.

Intraday high was 40,135.44 points, while the lowest level of the day was recorded at 39,706.56 points.

Arif Habib Ltd, in its post-session analysis report, said the market remained sideways throughout the day due to concerns over rising political and economic unrest.

“PSX opened in the negative zone as rupee continued to decline against US dollar. Volumes continued to remain dry in the main board although decent volumes were witnessed in the 3rd tier stocks,” it reported.

Positive contributors were banks (23.6 points), exploration and production companies (18.7 points), oil marketing companies (16.9 points), technology (15.1 points) and textile (14.8 points).

KSE-30 index also increased by 0.21 percent or 32.32 points to close at 15,131.03 points compared with 15,098.71 points recorded in the last session.

Traded shares rose by 56 million shares to 131.861 million from 75.431 million shares traded previously, whereas value increased to Rs4.205 billion from Rs1.832 billion. Market capital expanded to Rs6.743 trillion from Rs6.733 trillion. Out of 302 companies active in the session, 148 closed in green, 130 in red, with 24 remaining unchanged.

Analyst Ali Najib of Topline Securities said equities had a mixed session as all eyes were on the Supreme Court verdict on Punjab chief minister’s voting issue.

OMC, banks, E&P, tech and chemical sector stocks contributed positively to the index, where Pakistan State Oil, Meezan Bank, Pakistan Oilfields, TRG and Lotte Chemicals added 73 points, cumulatively. On the flip side, Hubco, Indus Motor, and Bank Alfalah witnessed some profit taking as they lost 37 points collectively.

Highest increase was recorded in shares of Nestle Pakistan, up Rs96.13 to close at Rs5,998.13/share, followed by Mehmood Tex, up Rs45.95 to close at Rs658.71/share.

A significant decline was noted in shares of Indus Motor, which fell Rs38.54 to end at Rs1,080.54/share, followed by Shield Corp, down Rs21.45 to end at Rs267/share.

Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks showed recovery led by selected oil and banking stocks on SBP assurance over IMF agreement and financing of friendly countries easing economic fears.”

Surging global crude oil prices and strong government response to political noise played a catalytic role in the positive close, he added.

TPL Properties was the volume leader, trading 19.629 million shares. The scrip increased 34 paisa to reach Rs17.32/share. It was followed by Cnergyico Pk, trading 11.887 million shares. Its scrip shed 10 paisa to end at Rs4.85/share.

Other stocks that recorded significant turnover included Lotte Chemical, WorldCall Telecom, Pak Refinery, Unity Foods Ltd, TRG Pak Ltd, Faysal Bank, Oil and Gas Development Company, and Ghani Glo Hol.

Shares’ turnover in the future contracts decreased to 64.884 million shares from 70.439 million shares.