Market watch: Index endures volatile ride, but ends positive

Benchmark KSE 100-share Index rises 73.62 points

KARACHI: A volatile see-saw ride saw the benchmark-100 index inch upwards as institutional buying helped the bullish momentum after the KSE-100 had slipped in the red for a brief period.

At close on Tuesday, the Pakistan Stock Exchange’s benchmark index recorded a rise of 0.18% or 73.62 points to end at 40,294.38.

Elixir Securities, in its report, stated market opened positive but lack of volumes resulted in the index skidding in red for a brief period.



“Thereafter, index heavy MCB Bank (MCB PA +2.3%) and Pakistan State Oil (PSO PA +0.67%) provided the support and pushed the index back in the green zone; former led day’s gains on institutional buying and churned most volumes since mid-August,” said analyst Ali Raza.

“Cements and financials closed mixed while fertilisers closed lower with morning news of reduction in imported urea prices likely dampening sentiments,” the analyst remarked.

“Activity in second and third tier names fared well, evident by relatively steep volumes on KSE All share index.

“Retail favourites Bank of Punjab (BOP PA +5.3%) topped volumes chart while TRG Pakistan (TRG PA +5%) closed at upper price limit, contributing second-best points to KSE-100 index,” said Raza.

“Meanwhile, textile giant Nishat Mills (NML PA +0.3%) closed with trimmed gains, albeit at an all-time high, as the company announced stellar FY16 consolidated earnings (Rs17.3/sh) and pay-out (Rs5.0/sh),” he added.

JS Global analyst Ahmed Saeed Khan was of the view that volatility prevailed as the index juggled between +186 and -64 points.

“The automobile sector rallied on the back of depreciating Yen. Top performers of the sector were PSMC (+5.00%) and INDU (+1.34%),” he said.

“Rally was witnessed in the pharmaceutical sector after the Pharma Bureau chairman said that sector is likely to attract huge investments; SEARL (+1.58%) and SAPL (+5%) were the biggest index movers from the sector today.

“IBLHL (+5.00%) announced its FY16 result clocking in DPS of 10% and EPS of Rs4.24/share, which was better than markets expectation.

“Marginal positivity was witnessed in the oil sector following the trend of global crude oil prices that rose on the back of Nigeria and UAE to reach a deal to stabilise the market when the OPEC group meets today in Algiers,” Khan remarked.



“Overall the market sentiment remains positive as we expect further upside from current levels,” he added.

Trade volumes rose to 573 million shares compared with Monday’s tally of 484 million.

Shares of 442 companies were traded. At the end of the day, 210 stocks closed higher, 213 declined while 19 remained unchanged. The value of shares traded during the day was Rs14.4 billion.

Bank of Punjab was the volume leader with 86.9 million shares, gaining Rs0.66 to finish at 13.07. It was followed by Byco Petroleum with 35.9 million shares, losing Rs0.39 to close at Rs23.86 and WorldCall Telecom with 29.2 million shares, losing Rs0.11 to close at Rs2.98.

Foreign institutional investors were net sellers of Rs34 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, September 28^th, 2016.

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