Benchmark KSE-100 index rises 34.10 points. PHOTO: ONLINE
At close on Wednesday, the Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index recorded a rise of 0.09% or 34.10 points to end at 37,426.39.
Elixir Securities, in its report, stated that the day started off on a positive note as early gains in index heavy E&Ps and Engro Corp (ENGRO PA +0.4%) pushed benchmark KSE-100 index higher over 37,600.
“However, other sectors failed to follow the lead and skidded lower on lack of interest while E&Ps also witnessed profit-taking near day’s end leading KSE-100 index to close the day with marginal gains,” said analyst Ali Raza.
“ENGRO PA supported early ride on news that it has offloaded 22% stake in fertiliser subsidiary by way of private placement which according to our estimates will have a one-time impact of Rs37 per share on company’s bottom line,” said Raza.
“The said development, however, brought Engro Fertilizers (EFERT PA -1.1%) under pressure as the deal was executed at 4.2% discount to EFERT’s previous day closing price,” he added.
Meanwhile, JS Global was of the view that volatility prevailed as the index surged to make an intraday high of around 222 points, but failed to sustain these levels as profit taking was witnessed across the board.
“Rally was witnessed in the oil sector on the back of global crude oil prices trading above $51.50 mark after US inventory numbers clocked in lower than expected for the third consecutive week,” said Ahmed Saeed Khan.
“Major index movers of the aforementioned sector today were Oil and Gas Development Company and Pakistan State Oil.
“Positivity prevailed in the automobile sector after the government decided to tighten procedures on import of used cars. The top performer of the sector was PSMC (+0.36%),” Khan said.
“Marginal positivity prevailed in the cement sector on the back of 18.52% year-on-year growth in domestic cement dispatches for the month of May,” he said.
“Star performer of the sector was FCCL (+3.96%). Moving forward we expect marginal positivity to continue ahead of MSCI reclassification, accumulation into dips is recommended,” Khan added.
Trade volumes rose to 143 million shares compared with Tuesday’s tally of 140 million.
Shares of 349 companies were traded. At the end of the day, 118 stocks closed higher, 202 declined while 29 remained unchanged. The value of shares traded during the day was Rs7.7 billion.
K-Electric Limited was the volume leader with 22.2 million shares, losing Rs0.14 to finish at Rs8.06. It was followed by Fauji Cement with 15.7 million shares, gaining Rs1.33 to close at Rs34.89 and Pakistan International Bulk Terminal Limited with 13.4 million shares, gaining Rs0.81 to close at Rs32.72.
Foreign institutional investors were net buyers of Rs7.9 billion during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, June 9th, 2016.
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