
Despite dipping crude oil prices, the index-heavy sector gained on the back of attractive valuations and investor-led anticipation that the rout had gone too far.

Financials proved to be the sore point, however, as the KSE-100 index ended negative yet again. At close on Thursday, the Pakistan Stock Exchange’s (PSX) KSE-100 index fell 0.05% or 14.21 points to end at 30751.80.
Elixir Securities analyst Faisal Bilwani said Pakistan equities closed little changed after listless trading as the wider market struggled to find a clear direction amid rout in regional markets and global commodities. “A positive open on institutional buying was followed by slow paced declines that pulled benchmark KSE100 into red with foreign selling in index names, primarily, a major cause of concern.”
“Despite volatile global crude and benchmark Arab light testing fresh recent lows, Pakistan Oilfields (POL, +5%) hit the upper price limit as most see that the lower-crude led rout has gone too far.
“On the other hand, financials were lower on institutional flows along with conflicting views on interest rates going forward while cements also failed to generate excitement after challenging market direction in past few sessions.”
Meanwhile, JS Global analyst Ahmed Saeed Khan said the market hit an intra-day high of 263.16 points but failed to sustain the bullish momentum, as profit taking was observed during the later hours.
“The index succumbed to the bears closing down -14.21 points (-0.05%). Maple Leaf Cement (+0.78%) continued its rally on account of better than expected results declared by the company.

“Investor interest was seen in the exploration and production sector as POL (+4.95%) and Pakistan Petroleum Limited (+2.29%) closed in the green zone.
“UBL (-1.43%) and MCB (-1.25%) lost value during the trading session, as the cut off yield on Market Treasury Bill (MTB) auction declined in the auction held on Wednesday.”
Trade volumes rose to 135 million shares compared with Wednesday’s tally of 106 million shares.
Shares of 330 companies were traded on Thursday. At the end of the day, 162 stocks closed higher, 142 declined while 26 remained unchanged. The value of shares traded during the day was Rs7.6 billion.
TRG Pakistan Limited was the volume leader with 14.2 million shares, losing 1.34 to finish at Rs25.49. It was followed by K-Electric Limited with 12.4 million shares, losing Rs0.21 to close at Rs6.99 and Maple Leaf Cement with 6.7 million shares, gaining Rs0.64 to close at Rs82.87.
Foreign institutional investors were net sellers of Rs40.9 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, January 22nd, 2016.
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