Foreign institutional investors were net buyers of Rs253 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited. PHOTO: AFP
KARACHI: Pakistan equities closed higher on the first trading day of the new fiscal year with the benchmark KSE 100-share index re-testing the 38,000 level intraday on gains in select index names.
At close on Monday, the Pakistan Stock Exchange’s (PSX) benchmark index registered an increase of 0.48% or 183.22 points to end at 37,966.76.
Elixir Securities, in its report, said the day started with Engro Corp (+1.4%) opening gap up on news that the company had entered into an agreement with Netherlands-based company FrieslandCampina for sale of its 51% stake in its food subsidiary, which, according to their estimates, had a one-time cash inflow impact of Rs90 per share.
The development, however, resulted in Engro Foods (-5%) hitting the lower price limit as sale price in the agreement was estimated at a 27% discount to the company’s previous day closing price.
“In early trade, the wider market witnessed a dull spell of volumes with investors trading selectively ahead of six-day Eid holidays (including the weekend), however, activity picked up near mid-day with exploration and production (E&P), refineries and select financial stocks edging up on local institutions’ buying that pushed the benchmark KSE-100 index higher by the day’s close,” said the report.
“The market next week will likely be guided by a slew of factors such as developments in domestic politics, performances of regional markets and global commodities over the long holidays,” remarked Elixir Securities analyst Ali Raza.
“Moreover, we expect volumes to pick up as the earnings season excitement in days ahead will channel fresh liquidity into the market,” he added.
Meanwhile, JS Global analyst Arhum Ghous was of the view that positivity prevailed in the market as the index, after remaining under pressure during initial hours of trading, surged around 183 points to finally close at 37,966.
“Engro gained on the back of news that it has entered into a sale and purchase agreement with FrieslandCampina with respect to the sale of up to 51% shares in its subsidiary Engro Foods. This sale and purchase agreement will result in an estimated onetime gain of Rs75 per share for the holding company.”
“Attock Refinery Limited gained to close at its upper circuit as the refinery in its material information disseminated in the market announced that its diesel hydro desulphurisation plant has started operation to produce high-speed diesel as per Euro-II standards.”
This upgrading will enable Attock Refinery to take advantage of increased deemed duty of 9% for the companies that have upgraded their fuel output to European standards.
“Investor interest was seen in the E&P sector as Oil and Gas Development Company (+1.35%), Pakistan Petroleum Limited (+1.87%) and Pakistan Oilfields (+1.49%) gained to close in the green zone on the back of a notice issued at the PSX that testing at Makori Deep-01 has resulted in increased oil and gas flows,” he said.
Pakistan Oilfields, Pakistan Petroleum and Oil and Gas Development Company have post-commerciality working interests of 21.05%, 27.76% and 27.76% respectively in Makori Deep-01, added Ghous.
Trading volumes decreased to 110 million shares compared with Thursday’s tally of 115 million.
Shares of 311 companies were traded. At the end of the day, 205 stocks closed higher, 96 declined while 10 remained unchanged. The value of shares traded during the day was Rs7 billion.
K-Electric Limited was the volume leader with 29.2 million shares, gaining Rs0.01 to finish at Rs8.07. It was followed by Sui Northern Gas Pipelines with 15.5 million shares, gaining Rs1.73 to finish at Rs38.02 and TRG Pakistan Limited with 4.2 million shares, gaining Rs0.40 to close at Rs33.95.
Foreign institutional investors were net buyers of Rs253 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, July 5th, 2016.
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