Market watch: PSX sets new record high with sharp rise in volumes
Benchmark KSE-100 index increases 366.84 points
Benchmark KSE-100 index increases 366.84 points. PHOTO: AFP/FILE
KARACHI:
The stock market rallied and tested an all-time high of 36,800 points in intra-day trading on Thursday as inclusion of several stocks into the MSCI and an improving political scenario bolstered investor confidence.
At close, the Pakistan Stock Exchange (PSX) benchmark KSE 100-share index rose 1.01% or 366.84 points to end at 36,685.05.
Elixir Securities, in its report, stated Pakistan equities surged to test all-time high levels of 36,800 and settled at a record close of 36,685 as positives on the political front along with flows helped brush aside concerns over macros and upcoming budget.
“Volumes on the KSE-100 index doubled over what they were the day before and touched a nine-month high as institutional investors built positions with interest primarily in index names,” said analyst Faisal Bilwani.
“Nearly one-third of the volumes on the benchmark index were the result of trading in K-Electric (+8.8%) as investors increased holdings in this lagging play.
“Financials led the gains as MCB Bank (+5%) closed at the upper price limit and contributed the most to the day’s gains primarily on the MSCI-related excitement,” said Bilwani.
“Institutional interest also drove index-heavy Hub Power (+2.3%) and Engro Corp (+2%) higher, with the latter gaining on rumours that stake sale of its subsidiary Engro Foods (+0.9%) will likely go through before the end of this month,” he added.
Meanwhile, JS Global analyst Ahmed Saeed Khan was of the view that bulls returned with full force as the index rallied 367 points to close at the highest-ever level of 36,685 points.
“Rally in the market is attributed to the nine stocks that are expected to be included in the MSCI Emerging Market Index as MCB (+4.97%), Engro (+2.04) and Hubco (+2.26%) closed in the green zone,” he said.
“Pressure on the oil sector was witnessed amid depressed global crude oil prices as US stockpiles were unexpectedly the highest in eight decades; the biggest laggards of the sector were Oil and Gas Development Company (-1.24%) and Attock Refinery (-0.48%). “Honda Atlas Cars (+4.12%) rallied on the back of depreciation in the yen,” Khan said. “Moving forward we remain bullish on the market ahead of the MSCI reclassification decision.”
Trade volumes increased to 468 million shares compared with Wednesday’s tally of 269 million.
Shares of 378 companies were traded. At the end of the day, 240 stocks closed higher, 118 declined while 20 remained unchanged. The value of shares traded during the day was Rs16 billion.
K-Electric was the volume leader with 93 million shares, gaining Rs0.64 to finish at Rs7.89. It was followed by TRG Pakistan with 29.3 million shares, gaining Rs0.77 to close at Rs38.47 and Pakistan Telecommunication Company (PTCL XD) with 23.2 million shares, gaining Rs1 to close at Rs16.21.
Foreign institutional investors were net sellers of Rs613 million during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, May 20th, 2016.
The stock market rallied and tested an all-time high of 36,800 points in intra-day trading on Thursday as inclusion of several stocks into the MSCI and an improving political scenario bolstered investor confidence.
At close, the Pakistan Stock Exchange (PSX) benchmark KSE 100-share index rose 1.01% or 366.84 points to end at 36,685.05.
Elixir Securities, in its report, stated Pakistan equities surged to test all-time high levels of 36,800 and settled at a record close of 36,685 as positives on the political front along with flows helped brush aside concerns over macros and upcoming budget.
“Volumes on the KSE-100 index doubled over what they were the day before and touched a nine-month high as institutional investors built positions with interest primarily in index names,” said analyst Faisal Bilwani.
“Nearly one-third of the volumes on the benchmark index were the result of trading in K-Electric (+8.8%) as investors increased holdings in this lagging play.
“Financials led the gains as MCB Bank (+5%) closed at the upper price limit and contributed the most to the day’s gains primarily on the MSCI-related excitement,” said Bilwani.
“Institutional interest also drove index-heavy Hub Power (+2.3%) and Engro Corp (+2%) higher, with the latter gaining on rumours that stake sale of its subsidiary Engro Foods (+0.9%) will likely go through before the end of this month,” he added.
Meanwhile, JS Global analyst Ahmed Saeed Khan was of the view that bulls returned with full force as the index rallied 367 points to close at the highest-ever level of 36,685 points.
“Rally in the market is attributed to the nine stocks that are expected to be included in the MSCI Emerging Market Index as MCB (+4.97%), Engro (+2.04) and Hubco (+2.26%) closed in the green zone,” he said.
“Pressure on the oil sector was witnessed amid depressed global crude oil prices as US stockpiles were unexpectedly the highest in eight decades; the biggest laggards of the sector were Oil and Gas Development Company (-1.24%) and Attock Refinery (-0.48%). “Honda Atlas Cars (+4.12%) rallied on the back of depreciation in the yen,” Khan said. “Moving forward we remain bullish on the market ahead of the MSCI reclassification decision.”
Trade volumes increased to 468 million shares compared with Wednesday’s tally of 269 million.
Shares of 378 companies were traded. At the end of the day, 240 stocks closed higher, 118 declined while 20 remained unchanged. The value of shares traded during the day was Rs16 billion.
K-Electric was the volume leader with 93 million shares, gaining Rs0.64 to finish at Rs7.89. It was followed by TRG Pakistan with 29.3 million shares, gaining Rs0.77 to close at Rs38.47 and Pakistan Telecommunication Company (PTCL XD) with 23.2 million shares, gaining Rs1 to close at Rs16.21.
Foreign institutional investors were net sellers of Rs613 million during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, May 20th, 2016.