Market watch: Foreigners buy, index ends higher for 6th successive session

Benchmark KSE-100 index rises 263.79 points

KARACHI: The benchmark-100 index surged to close positive for the sixth successive session, as institutional buying and gains in regional markets was enough to instil confidence in investors.

Turnover witnessed improvement, hitting a 16-week high with value of shares going as high as Rs10.9 billion.



At close on Wednesday, the Pakistan Stock Exchange’s KSE-100 index rose 0.84% or 263.79 points to end at 31,772.90.

Elixir Securities analyst Ali Raza said stocks opened higher following recovery in regional markets and sustained gains throughout the day as benchmark index settled 0.8% higher near 31,800.

“Cements led the show on institutional buying with Dera Ghazi Khan Cement (DGKC +4.86%) hitting the upper lock, churning second best volumes and contributing most points to the index gains, while Maple Leaf Cement (MLCF +4.56%) and Fauji Cement (FCCL +3.95%) also made it in top five on volumes chart.

“Small and mid-caps were also up on local retail and prop book buying.”

“Meanwhile, exploration and production (E&P) sector, after having risen considerably in the last two sessions, witnessed profit-taking as Pakistan Oilfields (PPL -0.79%), Oil & Gas Development Company (OGDC -0.64%) and Pakistan Petroleum Limited (PPL -0.09%) all gave up their morning gains and closed in red,” said Raza.

“We expect volatile trading with benchmark index testing 32,300 in days ahead, however, participants will closely monitor foreigners’ activity and any large outflow in Wednesday’s session will delay a noticeable bounce back,” he added.

Meanwhile, JS Global analyst Arhum Ghous was of the view that positivity prevailed in the market as the index rallied to close in the green zone for a sixth consecutive session in line with strength in global markets.



“Banking sector continued to draw investor interest as Habib Bank Limited (HBL 1.48%), Muslim Commercial Bank (MCB 0.84%) and United Bank Limited (UBL 0.48%) all gained on the back of CPI numbers, which came at 4.02% for the month of February indicating a rising trend.

“OGDC (-0.64%), Pakistan Oilfields Limited (POL -0.79%) and PPL (-0.09%) scrip in the E&P sector lost value, as the crude oil prices declined to trade below $34 per barel (WTI).

“Honda Atlas (HCAR) and Pak-Suzuki Motor Company (PSMC) closed on their upper circuit on the back of a weakening Japanese Yen and strong sales numbers expected in the automobile numbers due to be announced by PAMA in the coming week.”

Trade volumes rose to 160 million shares compared with Tuesday’s tally of 94 million.

Shares of 341 companies were traded. At the end of the day, 201 stocks closed higher, 125 declined while 15 remained unchanged. The value of shares traded during the day was Rs10.9 billion.

TRG Pakistan Limited was the volume leader with 14.4 million shares, gaining Rs1.21 to finish at Rs25.45. It was followed by Fauji Cement with 9.2 million shares, gaining Rs1.55 to close at Rs40.75 and Dera Ghazi Khan Cement (DGKC) with 9.0 million shares, gaining Rs7.66 to close at Rs165.23.

Foreign institutional investors were net buyers of Rs58 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, March 3^rd, 2016.

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