Stocks lukewarm as outlook worsens

Stocks were lukewarm on Thursday as a chilling economic outlook, worsened by flooding and 47-year high consumer inflation, eclipsed the excitement over IMF inflows, traders said.

The Pakistan Stock Exchange's (PSX) benchmark KSE-100 Share Index gained 108.93 points or 0.26 percent to end at 42,460.08 points by the closing bell. The index touched a day high of 42,666.50 points and a low of 42,351.15 points during the day trade.

Ahsan Mehanti at Arif Habib Corp said stocks closed higher as investors weighed the release of $1.16 billion loan by the IMF, a much-needed support for the battered rupee.

”Midsession pressure was seen after reports that CPI-based inflation has reached 27.3 percent year-on-year in August 2022, while a weaker growth outlook in FY23 owing to flood losses and a slump in global equities weighed on the sentiment,” he said.

Mehanti added that robust, Rs489 million, tax collection for August 2022 and $160 million UN pledge as assistance to help recover from flood losses underpinned investor morale.

The KSE-30 Index also increased by 13.08 points or 0.08 percent to end at 16,016.49 points.

JS Research however said range-bound activities and uncertain market sentiments might continue to prevail in the upcoming trading sessions.

“Hence, any downside can be availed as a buying opportunity in blue chip stocks,” the brokerage said.

Traded shares increased by 67 million to 248.196 million from 181.267 million shares. The trading value increased to Rs8.016 billion from Rs7.209 billion. Market capital expanded to Rs7.044 trillion from Rs7.034 trillion. Out of 345 companies active in the session, 185 posted gains, 132 losses, and 28 ended unchanged.

Topline Securities said equities reacted to the arrival of the $1.2 billion tranche from IMF positively. “Initially, KSE-100 Index commenced the day on a positive note, stayed in a green zone throughout the day,” the brokerage said.

Cement, tech, and E&P sector stocks contributed positively to the index. The CHCC, LUCK, SYS, KOHC, and MARI added 85 points, cumulatively.

On the flip side, EFERT, EPCL, and HBL lost 30 points collectively to profit-booking.

The highest increase was recorded in shares of Sapphire Textile, which rose by Rs84.51 to Rs1,244.50 per share, followed by Premium Textile that gained Rs39.50 to end at Rs699.50 per share.

Bhanero Textile led the laggards as it fell Rs102.77 to Rs1,267.85 per share, followed by Sanofi-Aventis, which dipped Rs100.50 to Rs1,239.50 per share.

Arif Habib Ltd said the market witnessed a positive session as Pakistan received the IMF loan tranche. “Investors' participation remained active throughout the day, healthy volumes were observed, while the cement sector remained in the limelight,” it reported.

Sectors contributing to the performance included cement (+89.8 points), banks (+19.5 points), technology (+18.8 points), leather (+10.8 points), and investment banks (+8.0 points).

Cnergyico PK was the volume leader with 35.626 million shares. It fell by 4 paisas to Rs5.32 per share. Maple Leaf Cement, with 23.497 million shares, was the second most traded stock and it closed higher by 27 paisas to Rs28.89 per share.

Other high-traded stocks included Fauji Cement, Kot Addu Power, Pakistan Refinery, Flying Cement, WorldCall Telecom, Hascol Petrol, DG Khan Cement, and Unity Foods Ltd.

Turnover in the future contracts increased to 60.746 million shares from 43.130 million shares.