Market watch: Index gains as bullish sentiment returns
Benchmark KSE-100 index increases 181.09 points.
Benchmark KSE-100 index increases 181.09 points. PHOTO: AFP/FILE
KARACHI:
Investors treaded with caution, but were slightly more bullish on Wednesday as a volatile trading session saw the benchmark-100 index end positive after days of directionless finishes.
At close on Wednesday, the Pakistan Stock Exchange (PSX) benchmark KSE-100 index rose 0.50% or 181.09 points to end at 36,318.21.
Elixir Securities, in its report, stated that Pakistan equities closed 0.5% higher after trading volatile as late-buying primarily in small and mid-caps pushed the benchmark KSE-100 index to settle over 36,300 despite mid-day profit-taking.
“Turnover on KSE-100 index remained on the lower side as local institutions traded cautiously amid political noise as opposition parties locked horns with the government over the Panama issue,” said analyst Ali Raza.
“Day kicked off on a positive note and KSE-100 index steadily gained to test 36,366 intra-day helped by marginal gains in select E&Ps, cements and financials; profit-taking then followed that dragged KSE-100 index in the red zone,” he said.
“However, market once again came back in action with small and mid-caps leading as investors took comfort from the peaceful conclusion of the National Assembly session as it signified a smooth and strong democratic process.
“At day’s close, MCB Bank (MCB +1.7%) and Fauji Fertilizer (FFC +1.3%) stood among top index movers, while Pakistan International Bulk Terminal (PIBTL +3.4%) and The Resource Group (TRG +5%) occupied top slots on volumes chart,” Raza added.
Meanwhile, JS Global was of the view that positivity prevailed in the market.
“This positivity can be attributed to slight recovery in scrips expected to be part of MSCI Emerging market index, as MCB (+1.65%), FFC (+1.31%) and LUCK (+0.45%) gained to close in the green zone,” said JS analyst Arhum Ghous.
“FEROZ gained to close on its upper circuit for the second consecutive session on the back of news that the Ferozsons Laboratories Limited has obtained the manufacturing license, along with the requisite production process technology from Gilead Sciences Inc, to manufacture an authorised generic version of ‘Sovaldi’ (Hepatitis C Drug) in Pakistan,” he said.
“PIBTL (+3.39%) continued its upward trajectory for the fourth consecutive session and was today’s volume leader. POL (-0.42%) and PPL (-0.07%) opened on a positive note but came under selling pressure during the late hours on the back of marginal correction in crude oil prices during the trading session.
“We remain bullish on the market and recommend accumulation on dips,” Ghous added.
Trade volumes fell to 268 million shares compared with Tuesday’s tally of 274 million.
Shares of 376 companies were traded. At the end of the day, 216 stocks closed higher, 135 declined while 25 remained unchanged. The value of shares traded during the day was Rs10.2 billion.
Pakistan International Bulk Terminal was the volume leader with 29.8 million shares, gaining Rs1.09 to finish at Rs33.26. It was followed by TRG Pakistan Limited with 28.9 million shares, gaining Rs1.79 to close at Rs33.70 and Byco Petroleum with 19.9 million shares, gaining Rs1.08 to close at Rs22.71.
Foreign institutional investors were net buyers of Rs78 million during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, May 19th, 2016.
Investors treaded with caution, but were slightly more bullish on Wednesday as a volatile trading session saw the benchmark-100 index end positive after days of directionless finishes.
At close on Wednesday, the Pakistan Stock Exchange (PSX) benchmark KSE-100 index rose 0.50% or 181.09 points to end at 36,318.21.
Elixir Securities, in its report, stated that Pakistan equities closed 0.5% higher after trading volatile as late-buying primarily in small and mid-caps pushed the benchmark KSE-100 index to settle over 36,300 despite mid-day profit-taking.
“Turnover on KSE-100 index remained on the lower side as local institutions traded cautiously amid political noise as opposition parties locked horns with the government over the Panama issue,” said analyst Ali Raza.
“Day kicked off on a positive note and KSE-100 index steadily gained to test 36,366 intra-day helped by marginal gains in select E&Ps, cements and financials; profit-taking then followed that dragged KSE-100 index in the red zone,” he said.
“However, market once again came back in action with small and mid-caps leading as investors took comfort from the peaceful conclusion of the National Assembly session as it signified a smooth and strong democratic process.
“At day’s close, MCB Bank (MCB +1.7%) and Fauji Fertilizer (FFC +1.3%) stood among top index movers, while Pakistan International Bulk Terminal (PIBTL +3.4%) and The Resource Group (TRG +5%) occupied top slots on volumes chart,” Raza added.
Meanwhile, JS Global was of the view that positivity prevailed in the market.
“This positivity can be attributed to slight recovery in scrips expected to be part of MSCI Emerging market index, as MCB (+1.65%), FFC (+1.31%) and LUCK (+0.45%) gained to close in the green zone,” said JS analyst Arhum Ghous.
“FEROZ gained to close on its upper circuit for the second consecutive session on the back of news that the Ferozsons Laboratories Limited has obtained the manufacturing license, along with the requisite production process technology from Gilead Sciences Inc, to manufacture an authorised generic version of ‘Sovaldi’ (Hepatitis C Drug) in Pakistan,” he said.
“PIBTL (+3.39%) continued its upward trajectory for the fourth consecutive session and was today’s volume leader. POL (-0.42%) and PPL (-0.07%) opened on a positive note but came under selling pressure during the late hours on the back of marginal correction in crude oil prices during the trading session.
“We remain bullish on the market and recommend accumulation on dips,” Ghous added.
Trade volumes fell to 268 million shares compared with Tuesday’s tally of 274 million.
Shares of 376 companies were traded. At the end of the day, 216 stocks closed higher, 135 declined while 25 remained unchanged. The value of shares traded during the day was Rs10.2 billion.
Pakistan International Bulk Terminal was the volume leader with 29.8 million shares, gaining Rs1.09 to finish at Rs33.26. It was followed by TRG Pakistan Limited with 28.9 million shares, gaining Rs1.79 to close at Rs33.70 and Byco Petroleum with 19.9 million shares, gaining Rs1.08 to close at Rs22.71.
Foreign institutional investors were net buyers of Rs78 million during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, May 19th, 2016.