Benchmark KSE 100-share Index gains 96.32 points. PHOTO: FILE
KARACHI: Pakistan equities maintained the uptrend with the start of new week as the benchmark KSE 100-share Index closed above 40,000 points, though turnover fell 21% compared to the previous session.
At close on Monday, the Pakistan Stock Exchange’s benchmark index recorded a rise of 0.24% or 96.32 points to end at 40,023.02.
Elixir Securities, in its report, said index names saw relatively little interest as institutions traded cautiously while small and mid-caps were abuzz with activity with top 30 slots on the volumes board being occupied by shares priced below Rs100.
“The market opened positive with K-Electric (+2.4%) attracting both retail and institutional interest after the company notified the exchange and confirmed earlier rumours of a potential stake sale by its parent company.”
K-Electric traded more than 30% of the volumes on the KSE 100-share Index and closed green and at levels last seen in January 2015 as investors cheered the notification about the stake sale and were betting on a favourable strike price, said the report.
Meanwhile, National Bank of Pakistan (+4.9%) added to recent gains to close at a record high following announcement of half-year earnings last week.
“With the chartist bullish given sharp moves in index names and the market in general, we see further gains as institutional investors track foreigners activity,” commented Elixir Securities analyst Faisal Bilwani.
Meanwhile, JS Global analyst Nabeel Haroon said the market continued its positive momentum as the index gained 96 points to close in the green zone for the fourth consecutive day.
“Major activity was witnessed in second and third-tier stocks. K-Electric was the volume leader as the electricity provider declared its $2.2-billion plan to improve its generation capacity and upgrade the transmission and distribution network.”
The information disseminated in the market by the company that its majority stakeholder (Abraaj) was evaluating the possibility of divesting (directly or indirectly) its shareholding in K-Electric further sparked investor interest, he said.
Pakistan International Bulk Terminal (+0.77%) gained on the back of a statement made by its CEO which said its $255-million terminal at Port Qasim would be operational by the end of this year.
“Engro Fertilizers (+0.50%) and Fauji Fertilizer Bin Qasim (+0.53%) in the fertiliser sector gained to close in the green zone on the back of data showing a month-on-month growth in fertiliser sales,” Haroon said. “Moving forward, we expect the market to continue its bullish momentum.”
Trade volumes rose to 389 million shares compared with Friday’s tally of 362 million.
Shares of 447 companies were traded. At the end of the day, 260 stocks closed higher, 166 declined while 21 remained unchanged. The value of shares traded during the day was Rs12.4 billion.
K-Electric was the volume leader with 49.7 million shares gaining Rs0.21 to finish at Rs9.09. It was followed by Byco Petroleum with 22.6 million shares, gaining Rs1.17 to close at Rs24.74 and Pace (Pakistan) Limited with 18.9 million shares, losing Rs0.01 to close at Rs7.16.
Foreign institutional investors were net buyers of Rs132 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, August 30th, 2016.
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