PHOTO: AFP/FILE
Lower regional markets and anxiety over political noise and confrontation related to PIA’s privatisation kept investors cautious with lacklustre activity in the broader market.
At close, the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index rose 0.39% or 123.45 points to end at 32,084.61.
Elixir Securities analyst Ali Raza said stocks opened lower earlier and benchmark KSE-100 index stayed in the red for most of the day with contributions in declines mainly from oil stocks that tracked lower international crude.
“Reported foreign buying in index names in late hours, however, pulled the market out of the red. “Most positive contribution in index points came from Habib Bank Limited (HBL PA +2.7%) that churned over 2 million shares on reported institutional interest, followed by Oil and Gas Development Company (OGDC PA +1%) that covered morning losses near closing bell,” said Raza.
“We see benchmark to test 32,500 in coming days as investors cherry pick on earnings related interest while retail and prop book activity picks up on hopes that the worst of foreign selling is done with.
“We recommend buying LUCK, DGKC, HBL, KEL, HUBC and PPL,” he added.
Meanwhile, JS Global analyst Ahmad Saeed Khan said intra-day recovery of over 1.4% in the global crude oil prices served as a positive trigger for the oil and gas sector pushing the index to close positive.
He said rally in the banking sector continued on the back of unchanged policy rate, higher than expected inflation and increase of private sector lending’s by 9% for 6 months till December 2015.
“HBL (+2.69%) was the top performer in the sector.
“Inauguration of M8 highway and largest concrete pour in Crescent Bay project kept interest in the cement sector alive. Lucky Cement Limited (LUCK +0.46%) and Dewan Cement Limited (DCL +5%) rallied as their plants are closest to the Crescent Bay project.”
“Moreover, Honda Atlas Cars (HCAR +5%) hit its upper circuit in anticipation of strong monthly sales numbers. The market closed above the important 30DMA on good volumes which could signal a continuation of the rally though some profit taking can be expected tomorrow, Khan concluded.
Trade volumes rose to 147 million shares compared with Tuesday’s tally of 144 million shares.
Shares of 334 companies were traded on Wednesday. At the end of the day, 192 stocks closed higher, 121 declined while 21 remained unchanged. The value of shares traded during the day was Rs8 billion.
Pak Elektron XR was the volume leader with 8.3 million shares, gaining Rs1.49 to finish at Rs64.67. It was followed by Dewan Cement with 8 million shares, gaining Rs0.31 to close at Rs12.97 and Dewan Salman with 7.6 million shares, gaining Rs0.49 to close at Rs2.41.
Foreign institutional investors were net buyers of Rs12.3 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, February 4th, 2016.
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