Benchmark KSE-100 index closes at 32,392.92. PHOTO: AFP/FILE
KARACHI: Bulls returned to stock exchange action with the benchmark-100 index breaking a 10-day bleeding spell, climbing 683.56 points on Wednesday.
Investors took advantage of attractive valuations as an oversold market meant there was ample room for growth.
At close, the Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 2.16% or 683.56 points to end at 32,392.92.
Financials and cement remained in the limelight as tensions eased on many fronts.
Elixir securities, in its report, said Pakistan equities bounced back after a lengthy losing streak as fresh funds channelled through.
“After Tuesday’s selling, led by local funds and a marginal foreign inflow, investors took advantage of the weakness with wider market seeing a sharp upward move intra-day on gains primarily in financials (MCB Bank, +4.94%) and cements (Lucky Cements (+2.58%) and Dera Ghazi Khan Cement (+4.96%)).
“Small and mid-caps continued to lead volumes and were also up on local retail and prop book buying,” it said.
Meanwhile, JS Global analyst Ovais Ahsan said the market bounced back strongly as fears of foreign selling abated.
“Major index movers on Wednesday were Engro (+3.81%), Hub Power Company (+1.53%) and Lucky Cement (+2.30%).
“The index had been in highly oversold territory as measured by the Relative Strength Index which encouraged participants to build trading positions for a technical bounce back.
“The newly listed Amreli Steel (+5%) hit its upper circuit breaker on its second day of trading at the KSE,” he noted.
Trade volumes rose to 192 million shares on Wednesday compared with Tuesday’s tally of 189 million shares.
Shares of 347 companies were traded. At the end of the day, 265 stocks closed higher, 65 declined while 17 remained unchanged.
The value of shares traded during the day was Rs9.3 billion. Bank of Punjab was the volume leader with 17.7 million shares, gaining Rs0.30 to finish at Rs8.69. It was followed by TRG Pakistan Limited with 16.1 million shares, gaining Rs1.18 to close at Rs36.22 and Pak Electron with 13.4 million shares, gaining Rs2.59 to close at Rs63.02.
Foreign institutional investors were net sellers of Rs667 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, December 3rd, 2015.
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