Market watch: Stock market breaks 5-day losing streak

Benchmark KSE-100 index gains 167.41 points

KARACHI: The stock market broke a five-day losing streak on Friday despite unimpressive results by major players. The increase was largely on the back of rising international crude prices.

The Pakistan Stock Exchange’s benchmark KSE-100 index rose 0.50% or 167.41 points to end at 33,739.54.



According to Elixir Securities analyst Ali Raza, the equities closed on a positive note primarily due to gains in oils.

“Turnover on the KSE-100 index, however, dipped by over 48% from Thursday since participants stayed cautious after massive selling from foreign institutional investors. Moreover, the premier’s address to the nation due after the trading session and PTI’s planned protests on weekend also kept investors anxious and on the lookout.

“Market was mainly supported by index-heavy oils as more than 50% of the gains came from the oil sector alone. Pakistan Petroleum (PPL +4.2%) contributed most points to the KSE-100 index, followed by Pakistan Oilfields (POL +2%) and Oil and Gas Development Company (OGDC +0.5%).”

Besides oils, major sectors namely cements, fertilisers and financials all closed lower as investors opted to book profits ahead of the weekend.

Meanwhile, earnings announced by Habib Bank (HBL -0.30%) and DG Khan Cement (DGKC -0.9%) came largely in line with estimates, while earnings announced by Nishat Power (NPL +4.5%) beat market estimates.

“We see volatile trading pattern to continue while political developments over the weekend will play a vital role next week in setting the tone in the wider market.”

Meanwhile, Global Research’s Day Wrap stated that the market remained positive throughout the day driven by result announcements and recovering global oil prices.

“The KSE-100 index after touching a high of +270 points in the first half, mainly fuelled by the oil sector, lost momentum during the second half as thrust pushing up international crude oil prices gradually cooled down.



“PPL (+4.2%) was Friday’s top performer, contributing 48 points alone, as investors anticipate strong earnings in its upcoming result announcement. Several important result announcements were made; where HBL, DGKC and INDU (+0.64%) failed to impress investors as the earnings were relatively in line with expectations.”

International Steels (ISL +4.97%), however, gave investors a positive surprise by posting an earnings per share of Rs0.98 for 3QFY16 compared to a loss during the same period last year. The company yielded high gains largely due to higher selling price for its product and a cheap inventory on its books. Trade volumes fell to 209 million shares compared with Thursday’s tally of 327 million shares.

Shares of 358 companies were traded. At the end of the day, 208 stocks closed higher, 128 declined while 22 remained unchanged. The value of shares traded during the day was Rs8.6 billion.

Japan Power was the volume leader with 22.7 million shares gaining Rs0.57 to finish at Rs4.35. It was followed by Sui Northern Gas with 17.5 million shares gaining Rs1.30 to close at Rs31.18 and Dewan Motors with 17.5 million shares gaining Rs0.81 to close at Rs12.68.

Foreign institutional investors were net sellers of Rs170 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

Note: In an earlier version of the story, foreign investors were erroneously written 'net buyers' for the day, which has been corrected to net sellers.

Published in The Express Tribune, April 23^rd,  2016.

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