Market watch: Index rallies to close near 36,500
Benchmark KSE-100 index increases 434.6 points
Benchmark KSE-100 index increases 434.6 points. PHOTO: AFP/FILE
KARACHI:
After two days of bearish sentiment and volatile trading, the index posted an impressive recovery to close just shy of the 36,500-point level.
At close on Wednesday, the Pakistan Stock Exchange’s benchmark KSE 100-share Index recorded a rise of 1.21% or 434.6 points to end at 36,496.16.
Elixir Securities, in its report, stated Pakistan equities recovered some of the losses as the wider market witnessed a rebound primarily led by index heavy financials and select oils; namely MCB Bank (MCB PA +3.9%), Pakistan Petroleum (PPL PA +3.3%).
“Stocks opened sideways, but gradually inched up as investors were relieved to see no major reports of institutional selling while caution was evident as turnover was lower by 25%,” said analyst Faisal Bilwani.
“Inflation reading that clocked in lower than estimates at 3.17% year-on-year for May also helped regain confidence with KSE-100 index managing a close near 36,500,” he said.
“Fauji Cement (FCCL PA -5%) was at lower price limit on system while over 21 million shares exchanged hands off-market at average 9.4% lower than last close (we expect a significant improvement in on-system volumes tomorrow).
“As expected, small and mid-caps led volumes with K-Electric (KEL PA +5.5%) leading followed by TRG Pakistan (TRG PA +4.2%) on reported prop book and retail participation,” Bilwani added.
Meanwhile, JS Global stated that positivity prevailed as the index surged around 435 points.
“Concerns regarding China-Pakistan Economic Corridor (CPEC) progress settled down after the Minister for Planning, Development and Reform announced that financing arrangements for $30 billion for CPEC projects have either been finalised or are in various stages of approval,” said analyst Ahmed Saeed Khan.
“CPI inflation for the month of May coming much lower than expected at 3.17 vs consensus of 3.60 fuelled the rally.
“Market whispers of reduction in dividend tax in the upcoming budget garnered investor interest. Rally continued in north based cement manufacturers like PIOC (+1.09%), which will take advantage of the defunct production line of FCCL (-5.0%),” Khan said.
“PPL (+3.29%) was a major index mover on market expectations that the explorer will get better pricing on the extension of lease on its Sui field.
“Moving forward, we remain positive in the market, any dips should be considered as an opportunity to buy in recommended sectors,” he added.
Trade volumes fell to 206 million shares compared with Tuesday’s tally of 220 million.
Shares of 366 companies were traded. At the end of the day, 242 stocks closed higher, 100 declined while 24 remained unchanged. The value of shares traded during the day was Rs8.1 billion.
K-Electric Limited was the volume leader with 50.6 million shares, gaining Rs0.42 to finish at Rs7.97. It was followed by TRG Pakistan with 12.8 million shares, gaining Rs1.49 to finish at Rs36.75 and Pakistan International Bulk Terminal Limited with 11.2 million shares, gaining Rs1.51 to close at Rs31.75.
Foreign institutional investors were net buyers of Rs361 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, June 2nd, 2016.
After two days of bearish sentiment and volatile trading, the index posted an impressive recovery to close just shy of the 36,500-point level.
At close on Wednesday, the Pakistan Stock Exchange’s benchmark KSE 100-share Index recorded a rise of 1.21% or 434.6 points to end at 36,496.16.
Elixir Securities, in its report, stated Pakistan equities recovered some of the losses as the wider market witnessed a rebound primarily led by index heavy financials and select oils; namely MCB Bank (MCB PA +3.9%), Pakistan Petroleum (PPL PA +3.3%).
“Stocks opened sideways, but gradually inched up as investors were relieved to see no major reports of institutional selling while caution was evident as turnover was lower by 25%,” said analyst Faisal Bilwani.
“Inflation reading that clocked in lower than estimates at 3.17% year-on-year for May also helped regain confidence with KSE-100 index managing a close near 36,500,” he said.
“Fauji Cement (FCCL PA -5%) was at lower price limit on system while over 21 million shares exchanged hands off-market at average 9.4% lower than last close (we expect a significant improvement in on-system volumes tomorrow).
“As expected, small and mid-caps led volumes with K-Electric (KEL PA +5.5%) leading followed by TRG Pakistan (TRG PA +4.2%) on reported prop book and retail participation,” Bilwani added.
Meanwhile, JS Global stated that positivity prevailed as the index surged around 435 points.
“Concerns regarding China-Pakistan Economic Corridor (CPEC) progress settled down after the Minister for Planning, Development and Reform announced that financing arrangements for $30 billion for CPEC projects have either been finalised or are in various stages of approval,” said analyst Ahmed Saeed Khan.
“CPI inflation for the month of May coming much lower than expected at 3.17 vs consensus of 3.60 fuelled the rally.
“Market whispers of reduction in dividend tax in the upcoming budget garnered investor interest. Rally continued in north based cement manufacturers like PIOC (+1.09%), which will take advantage of the defunct production line of FCCL (-5.0%),” Khan said.
“PPL (+3.29%) was a major index mover on market expectations that the explorer will get better pricing on the extension of lease on its Sui field.
“Moving forward, we remain positive in the market, any dips should be considered as an opportunity to buy in recommended sectors,” he added.
Trade volumes fell to 206 million shares compared with Tuesday’s tally of 220 million.
Shares of 366 companies were traded. At the end of the day, 242 stocks closed higher, 100 declined while 24 remained unchanged. The value of shares traded during the day was Rs8.1 billion.
K-Electric Limited was the volume leader with 50.6 million shares, gaining Rs0.42 to finish at Rs7.97. It was followed by TRG Pakistan with 12.8 million shares, gaining Rs1.49 to finish at Rs36.75 and Pakistan International Bulk Terminal Limited with 11.2 million shares, gaining Rs1.51 to close at Rs31.75.
Foreign institutional investors were net buyers of Rs361 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, June 2nd, 2016.