Market watch: Index stages recovery as foreigners turn net buyers

Benchmark KSE-100 index gains 50.68 points


Our Correspondent April 13, 2016
Benchmark KSE-100 index gains 50.68 points.

KARACHI: Pakistan equities closed marginally positive as late buying primarily in oils helped offset losses, while select cements also helped lift the mood after lacklustre trading most of the day.

At close on Tuesday, the Pakistan Stock Exchange’s benchmark KSE-100 index gained 0.15% or 50.68 points to end at 33,616.90.

Elixir Securities, in its report, said stocks opened sideways and traded dull as investors traded cautiously owing to political noise and benchmark KSE-100 index hovered in red for most of the trading session.



“Only fertilisers and financials witnessed interest from institutional investors till mid-day, however, late recovery in global crude led oils to rally that pulled KSE-100 index into positive.

“As expected, the small and mid-caps remained in limelight on retail interest and dominated volumes chart.

“We see volatile trading to continue with key results of Pakistan Oilfields (POL), National Refinery Limited (NRL), Attock Petroleum Limited (APL), Attock Refinery Limited ATRL and Attock Cement Pakistan Limited (ACPL) to likely shift focus back to fundamentals,” said Elixir Securities analyst Faisal Bilwani.

“We expect support at 33,400 while strong resistance will likely kick-in at 34,000 points,” he added.

Meanwhile, JS Global analyst Arhum Ghous was of the view that the market saw a limited recovery on Tuesday after Monday’s selling spree by local institutions with oil explorers; Oil and Gas Development Company (OGDCL+.071%)  and (POL +1.79%)  gaining as global oil prices moved well north of $40/barrel.



“The Economic Coordination Committee’s (ECC) decision to issue sovereign guarantee for syndicated TFCs to the power sector worth Rs25 billion and approval of non-cash settlement of Rs70.167 billion power sector receivable/payables among various government inspired bullish sentiment in Pakistan State Oil (PSO+1.35%), which will be a key beneficiary of the aforementioned steps aimed at mitigating the vicious circular debt accumulation in the sector.

“The textile sector also gained led by Kohinoor Textile Mills Limited (KTML +2.76%) and Nishat Mills Limited (NML +0.85%) as the export oriented sector will set to gain from any potential weakness of the Pak rupee versus the US dollar,” said Ghous.

“We advise accumulation and remain bullish in the market as locals overreaction to perceived political risk should be an opportunity to build fresh positions,” he added.

Trade volumes fell to 156 million shares compared with Monday’s tally of 225 million shares.

Shares of 339 companies were traded on Tuesday. At the end of the day, 169 stocks closed higher, 146 declined while 24 remained unchanged. The value of shares traded during the day was Rs6.8 billion.

TRG Pakistan Limited was the volume leader with 25.6 million shares, gaining Rs0.10 to finish at Rs33.23. It was followed by Descon Chemical with 8.7 million shares, gaining Rs0.21 to close at Rs7.74 and Pakistan International Airlines (P.I.A.C) with 7.2 million shares, losing Rs0.32 to close at Rs8.25.

Foreign institutional investors were net buyers of Rs186 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, April 13th, 2016.

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