Stocks showed recovery Tuesday as investor sentiments improved on the back of what analysts said the International Monetary Fund's nod to transfer $501 million tranche under the Extended Fund Facility (EFF). The KSE-100 index gained 37 points or 0.10 percent to close at 37,077 compared to previous 37,040. In the intraday trade, the benchmark index showed volatility to have moved between the session high and low of 37,265 and 36,863 points.
"Stocks showed recovery after the IMF approved $501m tranche... on showing economic progress in the 11th review of Pakistan economic performance," viewed Ahsan Mehanti at Arif Habib Corp. The number of shares traded at ready-counter stood lower at 159 million compared to 164 million of last session. The traded value accumulated to Rs 9.67 billion from Monday's Rs 7.83 billion.
Trading activity, Mehanti said, was led by oil and banking scrips on strong valuations. "Pressure remained on concerns for political uncertainty and foreign outflows," he said. The day saw $3.47 million portfolios flowing out of the bourse. Mehanti said: "renewed investor interest MSCI EM upgraded scrips and recovery in global equities played a catalyst role for positive close at PSX." The market capital amounted to Rs 7.43 trillion from Rs 7.41 trillion.
Dewan Cement, down to Rs 14.80 at close, led volumes with 21 million share trading. Other most-traded stocks were K-Electric, TRG Pakistan, Hub Power Company, Dewan Motors, SSGC, Nishat Mills, Pak Electron, SNGPL and PIBT. Futures trade rose to 39 million contracts from the previous 26 million. Ahmed Saeed Khan of JS Research said volatility prevailed as the index juggled continuously between -176 and +228 points to close on a flattish note.
Marginal positivity was seen in the cement sector that gained on the back of government's decision to enhance duties on imported clinker. Top performer of the sector was KOHC with 2.14 percent gain. The oil sector ignored an almost 2 percent recovery in the global crude oil prices and continued with its depressed trajectory with the exception of OGDC which rallied 2.4 percent on back of gas discovery in Thal block-1. "The discovery is estimated to have a positive impact on company's earning of Rs 0.2 per share," said Khan. Moving forward, the analyst expects the market to continue consolidation at these levels and would take cue from the mood in global markets.
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