Stocks recovered slightly on Wednesday as investors tracked buying spree in global equities, while institutions accumulated index names betting on robust corporate earnings, dealers said.
Analyst Ahsan Mehanti at Arif Habib Corp said stocks showed recovery on institutional speculations in the earnings season amid bullish rally in global equities.
“Upbeat textile exports and cement dispatches, robust results in steel sector, and rise in local cement and POL prices played a catalytic role in the bullish close,” the analyst said.
Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index gained 0.48 percent or 210.98 points to close at 44,096.49 points.
KSE-30 shares index gained 0.68 percent or 147.90 points to close at 22,052.90 points.
As many as 390 scrips were active of which 176 advanced, 192 declined and 22 remained unchanged.
The ready market volumes stood at 269.98 million shares as compared with the turnover of 237.95 million shares a day earlier.
Analyst Ali Raza at Elixir Securities said equities closed positive as investors tracked international markets that recovered a bit after witnessing sharp losses.
“Day kicked off on a positive note as wider market opened gap up and traded higher, gaining as much as 0.9 percent.
However, Index couldn't sustain that level for long and settled 0.5 percent up as cautious investors sold into the rally during the day,” he added.
Institutional buying was evident in select names with United Bank, up 2.5 percent leading gains in the financial sector while Oil and Gas Development Company, surged 1.7 percent being the star performer from the E&Ps sector.
Highlight of the day was Sindh High Court's final judgment regarding case of increase in regulatory duties during October, wherein the court declared the said statutory regulatory order null and void. Steel sector initially declined as investors mistakenly perceived that regulatory duties were increased in this nullified SRO, however, stocks pared losses with investors later realising no material impact.
Going forward, analysts see volatility with guidance from institutional flows and earnings announcements.
Companies with highest gains included Unilever Foods, up Rs187.50 to close at Rs8,387.5/share, and Phillip Morris Pakistan, up Rs129 to close at Rs3,150/share. Companies with most losses included Khyber Tobacco, down Rs40.23 to close at Rs764.41/share and Indus Motors, down Rs33.07 to end at Rs1,759.36/share.
Highest volumes were witnessed in TRG Pakistan with a turnover of 26.84 million shares. The scrip shed two paisas to close at Rs38.85/share.
Azgard Nine was second with a turnover of 22.77 million shares. It gained 97 paisas to close at Rs17/share.
Aisha Steel Mill was third with a turnover of 19.46 million shares. It shed 48 paisas to close at Rs21.81/share.