Benchmark KSE 100-share index increases 709.94 points. PHOTO: AFP/FILE
KARACHI: The KSE-100 Index bounced back sharply on Wednesday, posting a recovery after the Brexit shock shook markets around the world including Pakistan.
Following the trend of regional markets that were on recovery mode, the Pakistan Stock Exchange’s (PSX) benchmark-100 index also rose, registering a solid increase of 1.91% or 709.94 points to end at 37,786.57
Elixir Securities, in its report, stated the market opened gap up led by financials with index heavy MCB Bank (MCB +2.6%), United Bank (UBL +1.7%) and Habib Bank (HBL +1.8%) providing early impetus.
“Institutional flows kept the momentum going as the day progressed with cements soon following suit as Lucky Cements (LUCK +4%) contributed most to the day’s gains and DG Khan Cements (DGKC +3.2%) settled at an all-time high close,” said analyst Faisal Bilwani.
“Retail stocks led volume charts albeit with selective interest as holiday mood seems to be settling in given last two trading days ahead of Eid Holidays next week,” said Bilwani.
The market will remain closed on Friday (July 1) and again from Tuesday, July 5, till the weekend.
Meanwhile, JS Global analyst Arhum Ghous was of the view that positivity prevailed as the market following its regional peer trend.
“Investor interest was seen in cement sector on the back of the news that cement companies have increased prices by Rs35 per bag to pass on increase in the Federal Excise Duty (FED) mechanism from 5% of MRP to Rs1 per kg in the recent budget announcement,” said Ghous.
“Major gainers of the aforementioned sector were LUCK (+4.03%) and PIOC (+4.33%).
“Oil and Gas Development Company (OGDC +2.25%), Pakistan Oilfields Limited (POL +2.10%) and Pakistan Petroleum Limited (PPL +1.84%) in the E&P sector gained to close in the green zone, as crude oil prices continued their upward trajectory to trade above $48/bbl level,” he said.
“Moving forward, we expect the market activity to remain correlated with the trend in global equity markets,” Ghous added.
Trade volumes decreased to 134 million shares compared with Tuesday’s tally of 158.9 million. Shares of 343 companies were traded. At the end of the day, 272 stocks closed higher, 49 declined while 22 remained unchanged. The value of shares traded during the day was Rs8.1 billion.
K-Electric was the volume leader with 17.9 million shares, gaining Rs0.24 to finish at Rs8.09. It was followed by TRG Pakistan with 7.1 million shares, gaining Rs1.63 to close at Rs34.29 and Sui Northern Gas with 7 million shares, gaining Rs1.72 to close at Rs36.29.
Foreign institutional investors were net buyers of Rs34 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, June 30th, 2016.
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