Market watch: Bourse reaches record intraday high, closes flat

Benchmark KSE-100 index rises 8.45 points

KARACHI: The bourse started off on a positive note on Friday, reaching an all-time intraday high of 36,848 on the back of oil stocks, but failed to keep up the momentum and closed the day flat.

The Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share index edged up 0.02% or 8.45 points to end at 36,693.50.

According to Elixir Securities analyst Ali Raza, equities closed little changed after the benchmark KSE-100 index failed to sustain morning gains.



“Volumes on the benchmark index dried up compared to yesterday (Thursday) as institutional investors became selective ahead of monetary policy announcement on Saturday.

“The market started on the front foot with the KSE-100 index springing to reach an all-time high of 36,848, thanks to gains in index-heavy oil stocks which tracked an overnight rise in global crude.”

Pakistan Petroleum (+3.8%) led the gains as investors cheered positive news flow that the company had been granted a 10-year lease extension on its largest field possibly with improved pricing that could potentially add around Rs3 per share.

“The wider market, however, struggled to find a clear direction and skidded lower with major sectors namely cement, financial and fertiliser closing in the red. On the other hand, small and mid-cap plays topped the volumes chart on retail activity.

“We see a volatile market in the near term with investors tracking institutional flows and keeping a close watch on budget-related news flow, while weekend monetary policy decision will likely be a non-event as most expect no change in the discount rate.”

Meanwhile, JS Global analyst Arhum Ghous said volatility prevailed in the market as the index traded between an intraday high of +163 points and intraday low of -38 points to finally close on a flattish note (+0.02%).

“PPL in the E&P sector gained as the Balochistan cabinet in a meeting approved an agreement to give the Sui gas field lease to PPL for another 10 years as well as on the back of material information disseminated in the market of a discovery of hydrocarbons in exploratory well Kotri X-1 in Kotri block, wholly operated by PPL.

“Al Shaheer Corporation (-2.40%) lost value as the media reported that the government is considering levying sales tax on all types of meat sold in retail packing and animal feed in the upcoming budget.”



Pak Suzuki Motor (+1%) gained on the back of news that the federal government was considering increasing fixed duties on used imported cars in the band of 800cc to 1,000cc in the federal budget for FY17.

“Slight correction was seen in the stocks expected to be part of the MSCI Emerging Market Index, as MCB (-1.36%), Fauji Fertilizer (-0.71%) and Engro (-0.62%) lost value to close in the red zone. We remain bullish on the market and recommend accumulation on dips ahead of the MSCI Emerging Market reclassification.”

Trade volumes fell to 395 million shares compared with Thursday’s tally of 468 million.

Shares of 358 companies were traded. At the end of the day, 159 stocks closed higher, 179 declined while 20 remained unchanged. The value of shares traded during the day was Rs11.6 billion.

K-Electric was the volume leader with 38.4 million shares losing Rs0.19 to finish at Rs7.70. It was followed by Dewan Cement with 31.8 million shares gaining Rs0.38 to close at Rs16.74 and Jahangir Siddiqui & Co with 26.5 million shares gaining Rs1.11 to close at Rs23.50.

Foreign institutional investors were net buyers of Rs152 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, May 21^st, 2016.

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