KSE-100 witnessed wild swings in over 400-point range. PHOTO: AFP/FILE
At close, the Pakistan Stock Exchange’s benchmark index recorded a rise of 0.10% or 37.06 points to end at 37,076.63.
Elixir Securities, in its report, said morning gains were led by select cements and financials that pushed the benchmark KSE-100 index higher by over 200 points, however, profit-taking amid dry volumes in early hours resulted in the index erasing gains and testing support a little below 36,900 level.
“Thereafter, the wider market witnessed steady recovery and wiped day’s losses as value buyers jumped in to take advantage of the weakness.
“At day’s close, the United Bank Limited (UBL PA +3.7%) emerged as a top index mover on reported foreign buying, followed by Oil & Gas Development Company (OGDC PA +2.5%) which notified exchange of a gas discovery in Thal block,” said the report.
“Moreover, institutional interest was evident in lagging yield-play, Hub Power Company Limited (HUBC PA +0.8%), as it churned most volumes since June 2015,” it added.
“See volatile trading with investors continuing to monitor institutional activity, global markets and commodities. We strongly advise cherry-picking in growth plays, primarily in cements,” remarked Elixir Securities analyst Ali Raza.
JS Global analyst Ahmad Saeed Khan, on the other hand, said volatility prevailed as the index juggled continuously between -176 and +228 points to close on a flattish note.
“Marginal positivity was seen in the cement sector that gained on back of government’s decision to enhance duties on imported clinker, top performer of the aforementioned sector was Kohat Cement Company Limited (KOHC +2.14%).
“The oil sector ignored an almost 2% recovery in the global crude oil prices and continued with its depressed trajectory with the exception of OGDC (+2.47%) that rallied on the back of gas discovery in Thal block-1.
“The discovery is estimated to have a positive impact on company’s earning of Rs0.2/share.”
Khan said he expected the market to continue consolidation at the current levels and would take cue from the mood in global markets.
Trade volumes decreased to 158.9 million shares compared with Monday’s tally of 163.7 million.
Shares of 347 companies were traded. At the end of the day, 111 stocks closed higher, 204 declined while 32 remained unchanged. The value of shares traded during the day was Rs9.6 billion.
Dewan Cement was the volume leader with 21.1 million shares, losing Rs0.10 to finish at Rs14.80. It was followed by K-Electric Limited with 12.4 million shares, losing Rs0.15 to close at Rs7.85 and TRG Pakistan Limited with 10.4 million shares, gaining Rs0.41 to close at Rs32.66.
Foreign institutional investors were net sellers of Rs365 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, June 29th, 2016.
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