Market watch: Stocks hit new high, led by fertilisers and textiles

Benchmark KSE-100 index rises 129.27 points

KARACHI: Pakistan equities cruised higher on the first trading day after the budget announcement as gains in select few sectors and index names pushed the benchmark KSE 100-share Index to a new record high.

At close on Monday, the Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index recorded a rise of 0.35% or 129.27 points to end at 37,352.27.

 

Elixir Securities, in its report, said after opening sideways, the market gained steadily with fertiliser and textile names leading on positive measures announced in the federal budget for 2016-17.

“All fertiliser plays closed higher with Fauji Fertilizer contributing most points to the index, while Fauji, Fatima and Engro Fert landed themselves among top 10 on the volumes board.

“Textiles, however, failed to sustain gains at highs and many names including Nishat Mills and Nishat Chunian recorded profit-taking.”

Engro Corp (+2%) stood strong and contributed to gains on news flow that the private placement of Engro Fertilizers. Meanwhile, other sectors namely cement, financial and FMCG largely weighed on the index in the backdrop of neutral to negative budgetary measures,” said the report.

Meanwhile, JS Global analyst Arhum Ghous said the fertiliser sector continued its upward trajectory on the back of incentives announced in the budget and reduction in sales tax on prices of urea to 5%.

“Slight profit-taking was witnessed in the textile sector during late hours of the trading session as Gul Ahmed lost value to close in the red zone.

“Investor interest was seen in the pharmaceutical sector as the Drug Regulatory Authority of Pakistan updated its SOP for the annual increase in drug prices, according to which the price increase will be linked with the Consumer Price Index and will be effective from July 1.”

Top performers of the sector were Searl and IBL Healthcare as they both gained to close at their respective upper circuits.

Trade volumes fell to 227 million shares compared with Friday’s tally of 254 million.



Shares of 371 companies were traded. At the end of the day, 158 stocks closed higher, 198 declined while 15 remained unchanged. The value of shares traded during the day was Rs11.9 billion.

K-Electric Limited was the volume leader with 55.8 million shares gaining Rs0.18 to finish at Rs8.17. It was followed by Lotte Chemical with 18.7 million shares gaining Rs0.05 to close at Rs6.91 and Fauji Cement with 12.4 million shares losing Rs1.26 to close at Rs32.85.

Foreign institutional investors were net sellers of Rs31 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, June 7^th, 2016.

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