Fertiliser and chemical stocks remain firm

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Gains were led by fertiliser and chemical stocks which remained firm throughout the day. Low volume decline in Nestle kept KSE 100 in negative zone, whereas KSE-30 (free float index) moved in an extreme direction reflecting activity in the frontline stocks. The gainers outperformed losers with least reflection of illiquid stocks moving towards positive zone, despite sell-off in various high priced stocks.
The KSE 100 index closed at 12,533.55 levels with the loss of 42.93 points and total volume stood at 50,274,681 along with the total value of 2,615,970,396. KSE 30 index gained 19.78 points to close at 11,850.02 levels and All Share index closed at 8688.80 levels after losing 26.35 points. Hundred and nineteen scrips advanced 103 declined and 126 remained unchanged out of total 348 scrips traded.
Various stocks from chemical and fertiliser sectors duly followed the bull run initiated by Fauji group stocks, however the fertiliser stocks which were under threat from various fronts failed to invite follow-up support and wider interest. Group support allowed the stock to join the gaining spree, and presence of sellers on strength restricted the upside in various gainers from previous session – mainly from E&P, Cement and Banking sectors.
Range bound activity restricted resident participants, however, opportunities of sector and stock swapping were provided due to gaining spree in various main board stocks and was capitalised on by corporate participants. End of year results to be announced by various companies might prove to trigger more activity however, caution is recommended, said Hasnain Asghar Ali at Aziz Fidahusein.
Snap rallies on optimism may however provide profit taking opportunities, mainly in high priced stocks that are unlikely to sustain the running multiples due to curtailed local strength, he added.
Questions on FBRs’ achievement regarding above target revenue collection, ballooning circular debt, persisting energy crisis, volatile security and fragile international relations; all combined suggest caution. It is therefore recommended to stay focused on stocks not likely to be affected by above mentioned issues, he added.