Stocks gain 90 points in range-bound trading

KARACHI: The Pakistan Stock Exchange (PSX) witnessed a dull start to the trading week, with the benchmark KSE-100 Index managing to close a range-bound session slightly green.

“Exploration & production and banking scrips remained largely positive on Monday, whereas cement, fertiliser and pharma stocks faced selling pressure amid diminishing prospects of a further rate cut by the SBP,” said a report by Arif Habib Ltd. “Today’s release of monthly inflation data, which came in line with street estimates (8.2pc for May 2020), hinted that there might not be any rate cut in the near future.”

According to the report, the E&P sector got traction from an increase in international crude oil prices, which rose from the levels witnessed on Friday.

Off to good start, the benchmark KSE-100 Index recorded its intraday high at 34,062.14 after gaining 130.91 points. However, the rally was short-lived, with the index dropping 111 points to mark its intraday low at 33,820.09. It finally settled higher by 90.74 points at 34,021.97.

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Among other indices, the KMI-30 Index gathered 58.40 points to close at 55,230.07, while the KSE All Share Index added 31.08 points, settling at 24,466.26. Of the total traded shares, 113 advanced and 190 declined.

The overall volumes declined from 233.1 million shares in the previous session to 198.1 million shares (-15pc). Average traded value also declined by 29pc, from $62.4 million to $44.2 million. Pak Elektron Limited (PAEL +4.73pc), Unity Foods Limited (UNITY +1.64pc) and Fauji Foods Limited (FFL +3.43pc) led the volume chart, exchanging 22.74 million, 14.23 million and 11.38 million shares, respectively.

Sectors that kept the index in the green zone included banking (+169.29 points), oil & gas exploration (+51.54 points) and pharmaceutical (+6.15 points). Among the companies, MCB Bank Limited (MCB +56.20 points), United Bank Limited (UBL +37.14 points) and Oil and Gas Development Company Limited (OGDC +34.77 points) remained the top contributors.

The banking sector gained +1.76pc in its cumulative market capitalization, with MCB Bank Limited (MCB +4.17pc), Habib Bank Limited (HBL +1.73pc), United Bank Limited (UBL +3.56pc) and Meezan Bank Limited (MEBL +5.26pc) accumulating decent gains.

Meanwhile, Fatima Fertilizer Company Limited (FATIMA -0.59pc) declared its financial performance for the year ending December 31, 2019. The company’s sales appreciated by 46pc YoY, whereas gross profit margin declined from 50pc to 37pc. The company’s earnings per share increased from Rs5.67 last year to RsR5.75. Dividend yield stood at 7.52pc as against 4.80pc last year.

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