Market watch: Bourse rebounds to close at all-time high

Benchmark KSE 100-share Index gains 208 points

Our Correspondent July 21, 2016
Benchmark KSE 100-share Index gains 208 points. PHOTO: ONLINE

KARACHI: The stock market remained in a recovery phase on Thursday and recouped previous session’s losses as index-heavy sectors led the positive momentum that took the bourse to an all-time high.

At close, the Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index registered an increase of 0.53% or 208 points to end at 39,306.79.

Elixir Securities analyst Ali Raza said equities bucked the recent trend when the bourse traded sideways and inched upwards on the back of gains in selected index names.

“The day kicked off on a positive note in line with regional markets and the benchmark KSE-100 index steadily gained to test 39,400 near midday with investors cherry-picking notable names primarily in cement, auto and pharma sectors,” said Raza. “Lucky Cement (+2.5%) crossed the Rs700 per share mark for the first time, contributing most points to the KSE-100.”

Raza added retail favourite Pak Electron (+4.7%) closed at its upper price limit after topping the volumes chart and contributing the second highest points to the KSE-100 index as investors bet on the company’s prospects of winning a smart metering contract.

“Moreover, recent laggard Engro Fertilizers (+2.1%) maintained its northbound ride for the third consecutive session and landed among the top three traded shares.”

JS Global analyst Nabeel Haroon said positivity prevailed in the market as the index taking cue from regional peers gained 208 points to close at 39,307.

“The automobile sector continued to garner investor interest on the back of a weakening yen,” said Haroon. “Indus Motor Company (+2.4%) and Pak Suzuki Motor Company (+2.4%) were top performers of the sector.”

“The fertiliser sector gained as investors anticipate strong fertiliser dispatch numbers for July.”

The analyst said both gas utilities - Sui Northern Gas Pipelines Limited (+0.5%) and Sui Southern Gas Company (+2.6%) - gained as investors anticipated a gas price hike later this month following news earlier this week that the government intended to increase gas and electricity prices to fulfill its commitment to the IMF.

Trading volumes rose to 233 million shares compared with Wednesday’s tally of 232 million. Shares of 349 companies were traded. At the end of the day, 198 stocks closed higher, 128 declined while 23 remained unchanged. The value of shares traded during the day was Rs15.2 billion.

Pak Electron was the volume leader with 22.8 million shares, gaining Rs3.09 to finish at Rs69.44. It was followed by Dewan Motors with 15.1 million shares, gaining Rs0.99 to finish at Rs18.48 and Engro Fertilizers with 13.6 million shares, gaining Rs1.44 to close at Rs69.41.

Foreign institutional investors were net sellers of Rs269 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, July 22nd, 2016.

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