Benchmark KSE-100 index gains 191.72 points. PHOTO: FILE
KARACHI: Pakistan equities continued their positive ride as banking and cement stocks led the way for the benchmark-100 index to finish at yet another all-time high. The bullish sentiment is a result of MSCI’s decision to reclassify Pakistan as an emerging market.
At close on Thursday, the Pakistan Stock Exchange’s (PSX) benchmark-100 index settled at its all-time high of 38,751.60, up 191.72 points or 0.50%.
Elixir Securities analyst Faisal Bilwani said Pakistan equities picked up on their momentum to add another 200 odd points and tested 39K intra-day on MSCI EM upgrade excitement with gains mainly on the back of financials and cements.
“Market opened sideways and skidded lower for a brief period with index heavy exploration and production dragging benchmark KSE100 index as investors tracked dip in international crude,” said Bilwani.
“Market thereafter recovered with benchmark index gaining steadily and breaching the 39K levels as financials led the gains.
“Index heavy Habib Bank (HBL,+5%) contributed most for third consecutive session, followed by MCB Bank (MCB, +4.9%) and United Bank (UBL ,+2.6%) that also closed higher on reported institutional buying.
“Cements supported the ride albeit intra-day profit booking, however, Maple Leaf Cements (MLCF, +5%) weathered the selling to close at upper price limit.”
JS Global analyst Arhum Ghous said positivity prevailed in the market for the third consecutive day, as the index rallied around 192 points to close at a new all-time high of 38,752 level. “Investor interest was seen in the stocks provisionally making part of MSCI EM Index,” said Ghous. “OGDC (-1.8%) and POL (-1.4%) in the E&P sector lost value to close in the red zone on the back of declining crude oil prices.”
Ghous added that selling pressure was seen in the automobile sector on the back of appreciating Yen.
Trade volumes rose to 255 million shares compared with Wednesday’s tally of 243 million.
Shares of 343 companies were traded. At the end of the day, 148 stocks closed higher, 170 declined while 25 remained unchanged. The value of shares traded during the day was Rs17.5 billion.
K-Electric was the volume leader with 22.1 million shares, losing Rs0.18 to finish at Rs8.05. It was followed by Pakistan International Bulk Terminal with 21.2 million shares, gaining Rs0.28 to close at Rs33.67 and Pakistan Telecommunications Limited with 13.5 million shares, gaining Rs0.47 to close at Rs15.51.
Foreign institutional investors were net buyers of Rs828 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, June 17th, 2016.
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