Market watch: Index breaks losing streak, gains 411 points
Benchmark KSE 100-share Index registers increase of 1.05%
Benchmark KSE 100-share Index registers increase of 1.05%. PHOTO: EXPRESS
KARACHI:
Pakistan equities snapped a five-day losing streak and closed with sharp gains on aggressive institutional buying in index names.
At close, the Pakistan Stock Exchange’s benchmark-100 index recorded a gain of 1.05% or 410.86 points to end at 39,688.97.
Elixir Securities, in its report, stated that stocks opened positive and drifted lower for a brief period. However, the benchmark KSE-100 index recovered soon enough albeit on thin volumes.
The wider market witnessed a swift recovery as foreign investors reportedly turned as aggressive buyers in cements and financials.
“Resultantly, many notable names including Lucky Pakistan (LUCK PA +1.7%), Dera Ghazi Khan Cement (DGKC PA +2.5%) and Maple Leaf Cement (MLCF PA +2.1%) in Cements and Habib Bank (HBL PA +4.9%), United Bank UBL (PA +2.8%) and MCB Bank (MCB PA +1.7%) in financials posted a strong run.”
“Locals also likely piggybacked the index ride and attempted to take advantage of the recent weakness.
“Oils traded against market direction and closed red with Pakistan Petroleum (PPL PA -1.8%) correcting after management update on Asset Impairment. Turnover was up nearly 50% vs Monday with small caps leading the volumes charts,” said the report.
“We see stocks to continue to track flows with investors likely cautious and booking gains amid on-going political noise. We see market to test 40,000 points ahead of the long Eid holidays,” remarked Elixir Securities analyst Faisal Bilwani.
Meanwhile, JS Global analyst Ahmed Saeed Khan said the PSX followed the trend of its regional and global peers as it rallied around +411 points to close at 39,689.
“The positive sentiments at the bourse were led by the banking and cement sectors. Investors flocked towards the cement sector (+1.9%) as concerns on oversupply of cement abated. Top index movers of the sector were LUCK (+1.7%) and DGKC (+2.4%).”
“Similarly the automobile sector rallied on the back of depreciating Yen, where INDU (+1.0%) and HCAR (+0.7%) were top performers.
JS Global, however, advised caution ahead of Eid holidays.
Trade volumes rose to 330 million shares compared with Monday’s tally of 253 million.
Shares of 427 companies were traded. At the end of the day, 231 stocks closed higher, 173 declined while 23 remained unchanged. The value of shares traded during the day was Rs14 billion.
Byco Petroleum was the volume leader with 32.4 million shares, losing Rs0.22 to finish at Rs25.53. It was followed by WorldCall Telecom with 27.1 million shares, gaining Rs0.25 to close at Rs1.88 and Dewan Cement with 23.5 million shares, gaining Rs1.04 to close at Rs23.14.
Foreign institutional investors were net sellers of Rs565 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, September 7th, 2016.
Pakistan equities snapped a five-day losing streak and closed with sharp gains on aggressive institutional buying in index names.
At close, the Pakistan Stock Exchange’s benchmark-100 index recorded a gain of 1.05% or 410.86 points to end at 39,688.97.
Elixir Securities, in its report, stated that stocks opened positive and drifted lower for a brief period. However, the benchmark KSE-100 index recovered soon enough albeit on thin volumes.
The wider market witnessed a swift recovery as foreign investors reportedly turned as aggressive buyers in cements and financials.
“Resultantly, many notable names including Lucky Pakistan (LUCK PA +1.7%), Dera Ghazi Khan Cement (DGKC PA +2.5%) and Maple Leaf Cement (MLCF PA +2.1%) in Cements and Habib Bank (HBL PA +4.9%), United Bank UBL (PA +2.8%) and MCB Bank (MCB PA +1.7%) in financials posted a strong run.”
“Locals also likely piggybacked the index ride and attempted to take advantage of the recent weakness.
“Oils traded against market direction and closed red with Pakistan Petroleum (PPL PA -1.8%) correcting after management update on Asset Impairment. Turnover was up nearly 50% vs Monday with small caps leading the volumes charts,” said the report.
“We see stocks to continue to track flows with investors likely cautious and booking gains amid on-going political noise. We see market to test 40,000 points ahead of the long Eid holidays,” remarked Elixir Securities analyst Faisal Bilwani.
Meanwhile, JS Global analyst Ahmed Saeed Khan said the PSX followed the trend of its regional and global peers as it rallied around +411 points to close at 39,689.
“The positive sentiments at the bourse were led by the banking and cement sectors. Investors flocked towards the cement sector (+1.9%) as concerns on oversupply of cement abated. Top index movers of the sector were LUCK (+1.7%) and DGKC (+2.4%).”
“Similarly the automobile sector rallied on the back of depreciating Yen, where INDU (+1.0%) and HCAR (+0.7%) were top performers.
JS Global, however, advised caution ahead of Eid holidays.
Trade volumes rose to 330 million shares compared with Monday’s tally of 253 million.
Shares of 427 companies were traded. At the end of the day, 231 stocks closed higher, 173 declined while 23 remained unchanged. The value of shares traded during the day was Rs14 billion.
Byco Petroleum was the volume leader with 32.4 million shares, losing Rs0.22 to finish at Rs25.53. It was followed by WorldCall Telecom with 27.1 million shares, gaining Rs0.25 to close at Rs1.88 and Dewan Cement with 23.5 million shares, gaining Rs1.04 to close at Rs23.14.
Foreign institutional investors were net sellers of Rs565 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, September 7th, 2016.