market watch: Index shoots up for fifth consecutive session

Benchmark KSE 100-share Index gains 207.54 points

KARACHI: Bluechip stocks led the way as the benchmark-100 index continued its positive ride to breach another all-time high on Thursday.

At close, the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index registered an increase of 0.53% or 207.54 points to end at 39,257.00.



Elixir Securities, in its report, stated that the day started off on a positive note with oil stocks providing early support and pushing the benchmark to test an all-time high of 39,292. Minor profit-booking trimmed some of the gains, but late buying pushed the index upwards to help it close at a record level.

Elixir Securities analyst Faisal Bilwani said equities regained momentum on the back of late institutional buying primarily in bluechips. “Stocks opened sideways and benchmark KSE100 index briefly skidded into the red zone pulled lower by profit-taking in oils, however, pharmas and autos aided the recovery,” said Bilwani.

“Cements witnessed a rebound and were sharply up while investors brushed aside any rate change by the central bank as large cap financials mostly closed up with no major resistance.”

Bilwani said in terms of contribution, index heavy Habib Bank (HBL, +2.8%) and Hub Power (HUBC, +3.1%) cumulatively added more than half of the points to KSE100 index with latter on reports of foreign buying.

Small and medium enterprises continued to lead volumes charts as retail investors remained active and fresh funds made their way to equities, added Bilwani.

“It is worth noting that turnover on KSE100 took a plunge and was lower by 22% against July average.”

JS Global analyst Ahmed Saeed Khan said positivity prevailed for the fifth consecutive session. “The banking sector remained upbeat despite a decline of 20 basis points in Pakistan Investment Bonds auction which is indicative of the direction of interest rates in the future.



“HBL (+2.80%) led the banking sector and was the biggest index mover of the day,” said Khan. “The pharmaceutical sector continued with its positive trajectory, which was triggered by upward revised drug prices.”

The analyst said that the automobile sector remained positive on the back of sales surging 20% year-on-year where HCAR (+4.65%) rallied.

Trade volumes fell to 165 million shares compared with Wednesday’s tally of 196 million.

Shares of 364 companies were traded. At the end of the day, 213 stocks closed higher, 126 declined while 25 remained unchanged. The value of shares traded during the day was Rs11.6 billion.

Dewan Cement was the volume leader with 13.8 million shares, gaining Rs0.65 to finish at Rs16.23. It was followed by Sui Northern Gas with 10.9 million shares, gaining Rs0.97 to finish at Rs40.45 and K-Electric with 10.7 million shares, gaining Rs0.07 to close at Rs8.32.

Foreign institutional investors were net sellers of Rs413 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

 

Published in The Express Tribune, July 15^th, 2016.

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