Benchmark KSE-100 index rises 40.02 points. PHOTO: AFP/FILE
At close on Tuesday, the Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index recorded a rise of 0.11% or 40.02 points to end at 37,392.29.
Elixir Securities, in its report, said the wider market struggled to find a clear direction, however, sector-specific interest was evident in the pharma sector which maintained their northward ride on proposed positive measures in the recent budget, leading most names to close in green with Searle Pakistan (SEARL PA +4.9%) and IBL HealthCare (IBLHL PA +4.9%) closing at their upper price limits.
“Fertilisers that had gained sharply on Monday failed to carry momentum in
Tuesday’s session and witnessed profit-taking with Engro Fertilizers (EFERT PA -2.5%) taking the lead in declines.
“Meanwhile, reported local interest was seen in Pakistan Petroleum (PPL PA +3.9%) that closed higher and contributed most points to KSE-100 index,” added the report.
“We see range-bound trading to continue with investors closely monitoring institutional flows to guide market direction,” commented Elixir Securities analyst Ali Raza.
JS Global analyst Ahmed Saeed Khan said rally was witnessed in Oil and Gas Development Company Limited (OGDC +0.94%) and Pakistan Petroleum Limited (PPL +3.87%) after the US government data forecast showed that crude stockpiles dropped for a third consecutive week, thus pushing the price of crude North of $50.50 per barrel psychological mark.
“Rally in the pharmaceutical sector continued after the Drug Regulatory Authority of Pakistan (DRAP) updated its SOPs for annual increase in drug prices which is linked to inflation.”
According to Khan, the top performer of the aforementioned sector on Tuesday was SEARL (+4.85%).
“Marginal positivity prevailed in the cement sector on the back of respectable increase in Federal Public Sector Development Programme, top performers of the sector were Fauji Cement Company Limited (FCCL +2.16%) and Lucky Cement (LUCK +1.91%),” said Khan
“Moving forward, we remain bullish on the market and recommend accumulation on dips, ahead of MSCI Emerging Market reclassification decision,” he added.
Trade volumes fell to 140 million shares compared with Monday’s tally of 227 million.
Shares of 333 companies were traded. At the end of the day, 78 stocks closed higher, 231 declined while 24 remained unchanged. The value of shares traded during the day was Rs7.7 billion.
K-Electric Limited was the volume leader with 44.1 million shares, gaining Rs0.03 to finish at Rs8.20. It was followed by Fauji Cement with 15 million shares, gaining Rs0.71 to close at Rs33.56 and Dewan Motors with 10.2 million shares, gaining Rs0.79 to close at Rs17.63.
Foreign institutional investors were net buyers of Rs211 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, June 8th, 2016.
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