Market watch: Index inches up close to 33,500 as bulls dominate

Benchmark KSE-100 index rises 310.62 points

KARACHI: Buoyed by interest in cement and financial stocks, the benchmark-100 index continued its northward journey to inch closer to the 33,500-point mark.

At close on Friday, the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 share index rose 0.94% or 310.62 points to end at 33,449.62.



Elixir Securities analyst Faisal Bilwani said Pakistan equities kicked off the new quarter on a positive note.

“Although wider market traded range bound and selective interest prevailed in the morning session, while CPI inflation reading also clocked in slightly higher than expectations (Actual 3.94% vs Expected 3.8%), tides turned in afternoon session with cements and financials leading the day’s gains,” said Bilwani.

“Maple Leaf Cement (MLCF PA +3.05%) closed at record high as company announced early payoff of its Rs8 billion Sukuk loan.

“Meanwhile, E&Ps that traded lower in the morning session with initial reaction to volatile international crude price, closed the day higher and contributed to gains, following mid-day recovery in global crude,” added Bilwani.

Meanwhile, Global Research, in its report, stated that despite decline in regional markets, the KSE-100 carried forward Thursday’s momentum.

“Additional support was provided by declining profit rates on various saving certificates, whose yields fell by ~60bps, increasing the overall attractiveness of the equity market,” the report further stated.

“Consequently, Hub Power Company (HUBC +1.62%) gained investor’s attention due to its high dividend yield and contributed 24pts towards the day’s rally.



“The cement sector also benefitted from positive sentiments on expectation of strong results in the upcoming quarter in light of robust dispatches recorded during the period.

“Habib Bank Limited (HBL +1.05%), Lucky Cement (LUCK +1.55%) and Engro Corp (ENGRO +1.29%) cumulatively supported the index by 86pts while Glaxo Smith Kline (GLAXO -4.50%), Muree Brewery (MUREB -3.74%) and Engro Foods (EFOODS -1.50%) dragged the index down by 21pts,” stated the report.

Trade volumes rose to 204 million shares compared with Thursday’s tally of 164 million shares.

Shares of 352 companies were traded on Friday. At the end of the day, 223 stocks closed higher, 104 declined while 25 remained unchanged. The value of shares traded during the day was Rs9.7 billion.

TRG Pakistan was the volume leader with 22.1 million shares, gaining Rs1.42 to finish at Rs29.85. It was followed by Dewan Cement with 19.7 million shares, gaining Rs0.78 to close at Rs14.08 and TPL Trakker Limited with 11 million shares, gaining Rs0.99 to close at Rs13.89.

Foreign institutional investors were net sellers of Rs378 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, April 2^nd,  2016.

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