Stocks manage modest gains in range-bound session

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KARACHI: Indices of the Pakistan Stock Exchange (PSX) moved within a narrow range on Friday, with the KSE-100 Index tilting both ways before closing the session in the green. 

The benchmark index started the day on a positive note but remained volatile thereon, registering its intraday high at 35,105.16 after accumulating 126.98 points, and intraday low at 34,918.52 after shedding 59.66 points. The index finally settled higher by 73.20 points at 35,051.38. 

Among other indices, the KMI-30 Index gained 23.35 points to close at 56,459.32, while the KSE All Share Index gathered 39.39 points, ending at 25,087.02. Of the total traded shares, 137 advanced and 151 declined.

The overall market volumes declined from 383 million shares in the previous session to 175.8mn shares (-54pc). Average traded value also declined by 46pc, from $74.9 million to $40.6 million. TRG Pakistan Limited (TRG +6.68pc), Jahangir Siddiqui & Company Limited (JSCL -0.08pc) and Hum Network Limited (HUMNL -3.28pc) led the volume chart, exchanging 23.31 million, 12.75 million and 9.12 million shares, respectively.

Sectors that kept the index in green included pharmaceutical (+34.09 points), banking (+31.86 points) and fertilizer (+27.49 points). Among the companies, Fauji Fertilizer Company (FFC +24.18 points), The Searle Company (SEARL +22.78 points) and TRG Pakistan (TRG +19.99 points) remained the top contributors.

Adding 2.23pc to its cumulative market capitalization, the pharmaceutical sector turned out to be the top gainer of the day, with The Searle Company (SEARL +5.26pc), GlaxoSmithKline (GLAXO +2.68pc), Ferozsons Laboratories (FEROZ +7.50pc) and Macter International Limited (MACTER +5.00pc) posting decent gains.

Meanwhile, in a first for the fiscal year 2020-21, the PSX conducted the initial public offering (IPO) of The Organic Meat Company (TOMC). Through the IPO, the company is looking to raise Rs720 million.

WEEKLY ANALYSIS

The KSE-100 Index closed the first week of FY21 (29th June-3rd July) on a positive note, adding 3.28pc WoW with almost all sectors closing in green and vindicating strong investor confidence. The average volumes for the week stood at 250.8 million shares vs. 176.8 million in the previous week.

As per AKD Research, “The attack on PSX in early trading hours on Monday turned out to be a non-event for the market. The successful passage of Finance Bill 2020 with additional incentives for businesses (particularly cement sector, +6.5pc WoW) and debarring of institutional investments in National Saving Schemes (NSS) expected to direct flows to equity market helped in sustaining the upward rally.”

Among other important development during the week, the World Bank approved $500 million loan for budgetary support; SBP received $1.3 billion from Chinese banks; inflation for the month of June edged up slightly to 8.59pc YoY, and OGDCL started commercial production of gas from its exploratory wells Thal East-1 and Bhambhra-1, located in district Sukkur (Sindh).

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