Market watch: Stocks rally ahead of corporate results

Bulls staged a comeback at the Pakistan Stock Exchange on Friday as the benchmark KSE-100 index recorded a decent rally and ended the week on a positive note

After losing some ground a day earlier and ending a seven-day winning streak, the benchmark index again enjoyed a bull run ahead of major corporate result announcements due next week as investors opted to cherry-pick stocks across the board

Moreover, upbeat housing and construction finance data for 2021, which surged 85%, coupled with hopes for positive development in the upcoming executive board meeting of the International Monetary Fund (IMF) instilled optimism among market participants

Earlier, trading started on a weak note as the index fell steeply in the initial hours, touching intra-day low of 44,969 points

However, it managed to erase the losses soon after as investors resorted to cherry-picking of stocks at attractive valuations

Later, the index oscillated in a narrow range and managed to add some more points towards the end of trading

At close, the benchmark KSE-100 index recorded an increase of 263

35 points, or 0

58%, to settle at 45,345


A report of Arif Habib Limited stated that the KSE-100 index closed in the green zone as investors became optimistic about the IMF’s executive board meeting on January 12

Profit-taking was witnessed in the first trading hour after the coronavirus positivity ratio exceeded 2% in a single day for the first time since October 14 last year

Fertiliser sector was in the limelight due to expectation of a hike in urea prices in the market

Cement sector remained under pressure following the uptick in international coal prices

Activity continued to remain sideways as the market witnessed hefty volumes in third-tier stocks

Sectors contributing to the performance included banks (+108 points), fertiliser (+98 points), power (+46 points), exploration and production (+36 points) and engineering (+11 points), the report said

JS Global analyst Neelam Naz said that benchmark index closed in the green zone on Friday at the 45,346 level, gaining 263 points day-on-day

The session however, witnessed dull trading volumes with 242 million shares traded

Top three volume leaders were Telecard (6

8%), WorldCall Telecom (0

9%) and TRG Pakistan (-7


“We believe, upcoming corporate result announcements will further strengthen the positive momentum whereas any downside in the market will pave an opportunity for buying,” the analyst said

Overall trading volumes fell to 242

3 million shares compared with Thursday’s tally of 345

3 million

The value of shares traded during the day was Rs7

9 billion

Shares of 354 companies were traded

At the end of the day, 208 stocks closed higher, 124 declined and 22 remained unchanged

Telecard Limited was the volume leader with 26

1 million shares, gaining Rs1

17 to close at Rs18


It was followed by WorldCall Telecom with 21

7 million shares, gaining Rs0

02 to close at Rs2

28 and TRG Pakistan with 18

99 million shares, losing Rs8

57 to close at Rs105


Foreign institutional investors were net sellers of Rs5

36 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan

Date:08-Jan-2022 Reference:View Original Link