Market watch: KSE-100 Index gains 330 points on institutional buying

Benchmark KSE-100 index closes at 34,897.30 points

KARACHI: After one off-day, which saw the benchmark-100 index closing negative, Pakistan equities resumed their northbound rally to close a stone’s throw away from the 34,900 level.

Stocks opened sideways, suggesting the day was headed towards a dull session; however, institutional flows by mid-day helped swing the mood on reports of foreign buying that channelled fresh liquidity.



At close, the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index recorded a rise of 0.95% or 329.78 points to end at 34,897.30.

Elixir Securities, in its report, said Oil and Gas Development Company (OGDC PA +5%) hit the upper price limit and traded highest volumes in last six years on reports of foreign selling and rumoured buying by locals on possible addition of stock to Shariah-compliant list.

“Moreover, Pakistan Telecommunication Company Limited (PTCL PA 3.7%) also was green after on and off system crosses reportedly by foreign institutional investors.”

“The wider market cheered gains in index heavy oils and financials while recent laggards in cement sector also caught up to gains led by the Dera Ghazi Khan Cement (DGKC PA +1.7%) and Lucky Cement (LUCK PA +1%) albeit on thin volumes,” said the report.

“With key resistance level of 35,000 points not far, we see local institutional activity to push the benchmark to test new recent highs,” said Elixir Securities analyst Faisal Bilwani.

“We expect politics to remain a dampener in days ahead while market is to remain flows-driven and sensitive to global commodity prices particularly crude,” he added.

A JS Global analyst, on the other hand, said the market opened on a negative note and made an intra-day low of -93 points but recovered during late hours on the back of rally in the banking and E&P sector.

“The banking sector attracted investor interest on the back of inflation numbers released on Monday which clocked in at 4.17% (higher than expected),” said Arhum Ghous.

“Heavy weights in the sector like Habib Bank Limited (HBL 1.57%), United Bank Limited (UBL 2.41%) and MCB Bank (MCB 2.47%) gained to close in the green zone.



“In the E&P sector, OGDCL was the volume leader as it gained to close near its upper circuit.

“Recovery was seen in the cement sector, as FCCL (1.70%), MLCF (1.07%) and DGKC (1.67%) increased in value from their previous day close.”

“MUGHAL (1.07%) gained on the back of news that steel manufacturer is all set to launch earthquake resistant steel product by the name of Supreme due to be launched by the second week of May,” Ghous added.

Trade volumes rose to 197 million shares compared with Monday’s tally of 185 million.

Shares of 347 companies were traded. At the end of the day, 171 stocks closed higher, 154 declined while 22 remained unchanged. The value of shares traded during the day was Rs9.2 billion.

The Bank of Punjab was the volume leader with 21.9 million shares, losing Rs0.26 to finish at Rs9.04. It was followed by Pakistan Telecommunication Company Limited (PTCL) XD with 16.8 million shares, gaining Rs0.53 to close at Rs14.81 and Oil and Gas Development Company Limited (OGDCL) with 11.4 million shares, gaining Rs5.81 to close at Rs134.67.

Foreign institutional investors were net buyers of Rs73.7 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

 

Published in The Express Tribune, May 4^th, 2016.

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