Market watch: Stocks open 2017 in the green

Benchmark KSE 100-share Index gains 433.31 points

KARACHI: Pakistan equities welcomed the New Year in style as the benchmark-100 index surpassed the 48,000-point barrier to close at a fresh record high, keeping its momentum from the last few days of December.

At close on Monday, the Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index recorded a rise of 0.91% or 433.31 points to end at 48,240.28.

Elixir Securities, in its report, stated fertilisers provided early support as they came in the limelight over positive news of confirmation of reduction in gas prices; Fauji Fertilizer (FFC PA +3%) churning most volumes since July last year.



“Oil marketing plays also attracted attention as Pakistan State Oil (PSO PA +2.4%) closed positive while Hascol Petroleum (HASCOL PA +5%) hit the upper price limit on bets of inventory gains in the wake of rising global crude prices,” said analyst Faisal Bilwani.

“Engro Foods (EFOODS PA +5%) maintained its winning streak to close at a new record high above Rs200/share as investors placed bets post recent acquisition by Dutch food manufacturer,” he commented.

“Steel makers to the likes of Amreli Steel (ASTL PA +4.8%), Crescent Steel (CSAP PA +4.6%) and Mughal Iron & Steel (MUGHAL PA +4.5%) also closed at their respective upper price limits as investors bought on infrastructure story.

“Moreover, mid-day announcement of inflation reading that came in significantly lower than expectations at 3.7% YoY for December 2016 also helped and aided the ride,” Bilwani added.

JS Global analyst Nabeel Haroon was of the view that positivity prevailed in the market, as the index rallied to close at its new high level of 48,240.

“Banking sector led the gains in the market despite decline in MoM CPI number, as it clocked in at 3.7% for the month of Dec 2016. HBL (+3.09%) and MCB (+1.86%) were major index movers of the aforementioned sector,” said Haroon.



“Cement sector garnered investor interest on the back of investor anticipation of increased dispatch numbers for the month of Dec 2016 due to be released by APCMA later this week. BWCL (+5%) and FCCL (+1.82%) were major performers of the aforementioned sector.

“Investor interest was seen in fertiliser sector, as the sector gained to close (+2.1%) higher than its previous trading session. ENGRO (+2.79%) and FFC (+3.04%) were major performers of the aforementioned sector,” the analyst commented.

“We recommend investors to book profits on strength and wait for a correction in the market,” he added.

Trading volumes fell to 376 million shares compared with Friday’s tally of 387 million.

Shares of 423 companies were traded. At the end of the day, 258 stocks closed higher, 145 declined while 20 remained unchanged. The value of shares traded during the day was Rs18.8 billion.

K-Electric Limited was the volume leader with 43.8 million shares, gaining Rs0.15 to finish at Rs9.52. It was followed by Dost Steels Limited with 31.5 million shares, gaining Rs1.00 to close at Rs13.12 and Summit Bank with 23.1 million shares, gaining Rs0.53 to close at Rs4.93.

Foreign institutional investors were net sellers of Rs208 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, January 3^rd, 2017.

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