Equities manage modest gains

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KARACHI  : After a steep drop on Wednesday, the stocks managed to claw back a little with the KSE-100 index closing up by 12.77 points or 0.06 per cent.


Trading was highly volatile due to roll over of future contracts and closing of the financial year with the gap as wide as 251 points between the index’s day high at 21,211 and low at 20,960 points.


There were suggestions towards evening that the Prime Minister Nawaz Sharif might approve the much-awaited energy policy on Friday.


The investors heaved a sign of relief as the foreign inflows continued on Thursday, with the overseas investors’ purchasing stocks worth $2.48 million. Among local participants, ‘companies’ were aggressive buyers of shares valued at $4.88 million.


‘Banks’ also picked up choice scrips in the sum of $0.56 million. The ‘individuals’, however, were the scared lot who decided to offload a heavy $5.52 million worth stocks. ‘Mutual Funds’ also disposed of equity worth $2.12 million, part of it to meet redemption requests.


The market trading volume slipped further by 28 per cent to 147 million shares on Thursday, from 203 million shares the day earlier. Traded value was down 4 per cent to Rs7.119 billion, from Rs7.453 billion.


Traders at Arif Habib equity sales desk said in a note that the market seemed to consolidate around 21,000 points. PSO again remained as scrip of interest with good amount of fluctuation seen in its price as ECC was expected to approve circular debt payments to respective parties. MCB Bank on Thursday disengaged itself from the bearish hug and closed up 2.0 percent.


Bank Alfalah closed down 4.77pc at Rs17.96 as China Mobile disassociated itself from Warid Telecom sell off, in which BAFL has around 8pc holding.


Analyst Mujtaba Barakzai at JS Global said that the investor interest was evident in the cement sector due to strong sector margins. In line with the market, the energy sector remained volatile throughout the day with PSO hitting a low of Rs307.12 and a high of Rs320.80. The stock finally closed up 1.2pc.


Analyst Mohammad Rizwan at Topline Securities stated that the market remained range bound with major institutions opting to remain on the sidelines due to year end phenomenon. Volumes also remain suppressed with major activity dominated by BAFL and FCCL. Ahsan Mehanti stated that oil, energy and cement stocks played a catalyst role in bullish sentiments amid hopes of IMF approval of $5bn bailout package to ease economic woes. Speculations on early resolutions of circular debt issues in energy sector, recovery in global commodities and stocks markets affected the sentiments.


In all 338 stocks came up for trading on Thursday with 191 gainers and 125 losers. Market capitalisation declined by Rs6 billion to Rs5.136 trillion.


The market capitalisation-based KSE-30 index gave up 7.08 points to 16,225.90 points. Some of the major gainers for the day were Murree Brewery up by Rs12.82, Liberty Mills Rs11.00, Pak In Cont SD Rs9.45, Premium Textile Rs8.31 and Philip Morris higher by Rs6.00.


The big losers for the day included Indus Dyeing down by Rs29.79, Dreamworld Rs11.50, Gatron Industries Rs9.00 and Sunrays Textile Rs8.80.


The volume leader was Bank Alfalah with 17m shares traded down by 90 paisa to Rs17.96. Fauji Cement added 15 paisa to Rs13.34 on 12m shares, PTC lower by 17 paisa to Rs21.20 on 8m shares, Jah Sidd Co was up 10 paisa to Rs11.8 on 7m shares and Japan Power gained 40 paisa to Rs4.55 on 7m shares as investors expect small IPPs also to benefit from resolution of the circular debt problem.

Courtesy:  dawn

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