Benchmark
KSE-100 index inches up 2.88 points.
Turnover was the lowest in the last seven weeks as investors traded cautiously ahead of prime minister’s address to the National Assembly - his first after the Panama leaks.
The Pakistan Stock Exchange (PSX) benchmark KSE-100 index edged up on Monday 0.01% or 2.88 points to end at 36,125.37.
Elixir Securities, in its report, said the day kicked off on a positive note with index-heavy oil stocks pushing the benchmark index up by 121 points, however, the wider market failed to follow suit and skidded lower in the absence of major triggers and lack of institutional interest.
“Volumes somewhat rose near the day’s end as Oil and Gas Development Company (+1.6%) notified the exchange of receiving a stay in its favour with regard to the recent freeze of its bank accounts by tax authorities.”
Pakistan International Bulk Terminal (PIBTL +5%) closed at its upper price limit for the second straight session in the wake of euphoria over its inclusion into the MSCI small-cap index.
“Expect range-bound trading in the near term with domestic political noise keeping participants on the lookout,” added the report.
Meanwhile, JS Global analyst Arhum Ghous said volatility prevailed in the market as index oscillated between an intraday high of +120 points and intraday low of -32 points to finally close on a flattish note.
“Volatility in Monday’s session could be attributed to disturbance on the political front. PIBTL continued its upward trajectory, as it rose to its upper circuit for the second consecutive session on the back of news that it had been added to the MSCI Frontier Market small-cap index in the latest MSCI semi-annual review.
“Profit-taking was witnessed in Mughal Steel (-1.63%), as investors came in to book profits after the stock closed at its upper circuit on Friday following news that it has been contracted by the FWO (Frontier Works Organisation) for supply of steel bars for the M9 project on eastern route of the CPEC,” noted Ghous.
“In the exploration and production sector, OGDC, Pakistan Oilfields (+1.67%) and Pakistan Petroleum Limited (+0.75%) gained to close in the green zone as crude oil prices increased to trade above $37 per barrel.”
“Moving forward we remain positive on the market and expect the bullish momentum to return once the political noise settles down,” he added.
Trade volumes fell to 220 million shares compared with Friday’s tally of 313 million.
Shares of 374 companies were traded. At the end of the day, 189 stocks closed higher, 160 declined while 25 remained unchanged. The value of shares traded during the day was Rs7.5 billion.
Dewan Salman was the volume leader with 13.2 million shares gaining Rs0.28 to finish at Rs2.82. It was followed by TPL Trakker Limited with 12.8 million shares gaining Rs0.73 to close at Rs14.70 and TRG Pakistan Limited with 11.1 million shares losing Rs1.27 to close at Rs37.11.
Foreign institutional investors were net sellers of Rs4.1 million during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, May 17th, 2016.
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