Market watch: Index ends week with 395-point gain

Benchmark KSE-100 index ends at 32,478.98

KARACHI: Backed by oil, cement and financials, the benchmark-100 index continued to ride northward with results announcement sparking rallies in stocks ahead of a longer weekend.

At close on Thursday, the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index rose 1.23% or 394.92 points to end at 32,478.98. This was the KSE-100 index’s 10th successive positive finish and comes after a 11-day losing streak.



Elixir Securities analyst Ali Raza said Pakistan equities continued their winning streak to close the last working day of the week on an impressive note as benchmark KSE100 index closed only a stone’s throw away from 32,500.

“Stocks opened gap up in early trade and sustained gains as benchmark index increased steadily throughout the day driven primarily by institutional buying in index names,” said Raza.

“Oil stocks led the charge on surge in international crude with Pakistan Oilfields (POL,+4.76%) and Mari Petroleum (Mari,+5%) closing at their upper price limits while financials, cements and laggard fertilisers followed suit and contributed to the gains.”

Raza said that with signs of foreign selling somewhat seen to be slackening, confidence from retail participants also improved that was evident from increased activity in small and midcap players.

“As of Thursday, benchmark KSE100 index has increased by 5.5% in the past ten trading sessions and stands over 1,700 points higher.”

JS Global analyst Ovais Ahsan said bulls remained in full command. “The banking sector led by HBL +1.8% continued to ride a tailwind emanating from stabilizing interest rates and a pick-up in private sector lending,” said Ahsan.

“Oil and Gas Development Corporation +2.8% gained on the back of rebounding global oil prices and the explorer announcing a discovery at its Nashpa X5 well.”



Ahsan said that bullish sentiment was perpetuated by the finance minister’s comment that Pakistan has successfully completed the 10th review with the IMF, which should in turn lead to the release of $497 million loan to Pakistan under the current Extended Fund Facility.

“Lucky Cement +2.8% gained in anticipation of a sharp rise in demand in the south on the back of major projects like Emaar’s Crescent Bay picking up steam.”

Trade volumes rose to 151 million shares compared with Wednesday’s tally of 147 million shares.

Shares of 348 companies were traded on Thursday. At the end of the day, 227 stocks closed higher, 106 declined while 15 remained unchanged. The value of shares traded during the day was Rs9.4 billion.

TRG Pakistan Limited was the volume leader with 8.5 million shares, gaining Rs0.62 to finish at Rs27.62. It was followed by Jahangir Siddiqui Limited with 6.2 million shares, gaining Rs1 to close at Rs19.02 and Dewan Cement with 5.7 million shares, gaining Rs0.16 to close at Rs13.13.

Foreign institutional investors were net sellers of Rs108 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, February 5^th,  2016.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.