KARACHI: After a minor blip on Tuesday, the benchmark-100 index was back to its bullish momentum, closing in on the 34,000-point mark to settle 180 points higher.
Index-heavy exploration and production stocks led the way in early trade with cements also contributing to the day’s momentum. The index crossed the 34,000 level before profit-taking trimmed part of the gains.
At close on Wednesday, the Pakistan Stock Exchange’s benchmark KSE-100 index rose 0.53% or 179.88 points to end at 33,946.37.
Elixir Securities analyst Ali Raza said stocks had a positive start with Exploration and Production (E&Ps) leading the gains in early trade on higher global crude, while cements also rode along with investors tracking Tuesday’s foreign buying in cements ($2.3 million).
“Index heavy Oil & Gas Development Company (OGDC +1.7%) contributed most points to day’s gains, followed by Habib Bank Limited (HBL +0.9%) and Lucky Cement Limited (LUCK +1.3%).
“Moreover, D.G. Khan Cement Company (DGKC +1.2%) and Maple Leaf Cement (MLCF +1.9%) made another record close on reported foreign interest as investors continued to bet on growth emanating from infrastructure projects.
“Meanwhile, Pakistan Telecommunications Company Limited (PTCL +3.8%) added to recent gains as proposals of implementing floor price mechanism on tariffs for Cellular Mobile Operators (CMOs) will have a positive impact on company’s subsidiary, Ufone.
“We see a volatile market hovering near 34,000 as investors track institutional flows while weekend Monetary Policy may lead to lower participation in wider market for the remainder of the week. We don’t see any change and expect MPS on Saturday to be a non-event.”
Meanwhile, JS Global analyst Arhum Ghous said the cement sector led the rally on the back of 19.4% YoY record increase in cement dispatch numbers for the month of March.
“PTCL (+3.79%) continued its upward trajectory on prospects that the Pakistan Telecommunication Authority (PTA) may impose a floor on calling rates.”
Trade volumes fell to 298 million shares compared with Tuesday’s tally of 327 million.
Shares of 372 companies were traded. At the end of the day, 246 stocks closed higher, 109 declined while 17 remained unchanged. The value of shares traded during the day was Rs10.7 billion.
K-Electric Limited was the volume leader with 25.6 million shares, gaining Rs0.30 to finish at Rs7.74. It was followed by Jahangir Siddiqui and Company with 24.4 million shares, gaining Rs1.06 to close at Rs22.81 and TRG Pakistan Limited with 21.4 million shares, gaining Rs0.92 to close at Rs32.87.
Foreign institutional investors were net sellers of Rs309 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, April 7th, 2016.
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