Stocks gain 53 points on value-hunting

KARACHI: The Pakistan Stock Exchange (PSX) witnessed a bloodbath on Tuesday in the first half, but eventually the benchmark KSE 100 index managed to close in green with a gain of 53.73 points or 0.12 per cent at 43,883.08 points.

The benchmark index largely recovered its losses by the end of the day mainly because of broad-based value-buying. Investors scooped up shares that were trading at deep discounts, according to JS Global.

The unusual volatility resulted in an intraday low of 43,149 points (down 1.55pc) and an intraday high of 44,051 (up 0.51pc).

“Sentiments remained choppy as the delay in the ISI chief notification kept the investors cautious. Moreover, higher international oil prices kept concerns alive over inflationary pressures and further monetary tightening by the SBP (State Bank of Pakistan),” said a note by Topline Securities.

Market participation increased 79pc to 404 million shares on a day-on-day basis.

Sectors contributing to the PSX’s performance included banking (2.2pc), cement (0.8pc), engineering (0.7pc), exploration and production (0.3pc), oil marketing companies (0.3pc), auto (0.2pc) and fertiliser (-0.2pc).

Stocks that contributed significantly to the traded volume included WorldCall Telecom, TeleCard Ltd, Treet Corporation, Unity Foods and Bank of Punjab.

Shares that contributed positively to the index included Habib Bank Ltd (77.4 points), United Bank Ltd (31.3 points), Allied Bank Ltd (21.9 points), Bank Al Habib Ltd (18.5 points) and Bank of Punjab (15.1 points).

Stocks that contributed negatively included TRG Pakistan (91.2 points), Fauji Fertiliser Company (20.1 points), Systems Ltd (19.8 points), The Searle Company (16 points) and Hub Power Company (15.7 points).

“Moving forward, we recommend investors to adopt a buy-on-dip strategy in the blue-chip stocks,” said a research note by JS Global.