market watch: Index powers past 40,000 points

Benchmark KSE 100-share Index increases 395.89 points

KARACHI: The benchmark-100 index increased sharply for the second successive session, moving past the 40,000-point barrier, as institutional investors led the bullish momentum.

Small and mid-caps led the volumes chart on retail participation with the increase in crude oil prices helping the index-heavy sector post healthy gains.

At close on Wednesday, the Pakistan Stock Exchange’s benchmark-100 index recorded a gain of 1.00% or 395.89 points to end at 40,084.87.

Elixir Securities, in its report, stated gains were broad-based as institutional investors remained net buyers in index names, while retail investors attempted to piggyback the current ride and switched to an aggressive buying mode in small and mid-cap plays.



“Financials maintained their dominance increasing by 1.02% on reported foreigners’ interest, while cements also maintained their northbound ride, increasing by 0.92%, as local institutions cherry-picked notable names,” said analyst Ali Raza.

“Index heavy MCB Bank (MCB PA +2.3%) contributed most points to KSE-100 index, followed by Engro Corp (ENGRO PA +1.9%), Hub Power (HUBC PA +1.5%) and Oil and Gas Development Company (OGDC PA 1.3%),” said Raza.

“Overall, most activity was concentrated in small and mid-caps that led volumes and were up with top 21 slots on volumes board occupied by shares being lower than Rs50/share,” he added.

Meanwhile, JS Global analyst Nabeel Haroon said the market continued its positive momentum.



“Cement sector led the gains on the back of cement dispatches data released by the APCMA, which showed a YoY increase of 16.75% for the month of August 2016.

“Few of the major gainers of the aforementioned sector were CHCC (3.99%) and PIOC (3.43%). Automobile sector continued to garner investors’ interest as it closed 0.6% higher from its previous day close,” said Haroon.

“Top performers of the aforementioned sector were PSMC (2.87%) and INDU (0.45%).

“OGDC (1.28%) and POL (0.46%) in the E&P sector gained to close in the green zone as crude oil prices surged to trade above $45/bl level ahead of US oil inventory data due to be announced today,” he added.

“We expect positive momentum to remain intact.”

Trade volumes rose to 498 million shares compared with Tuesday’s tally of 330 million.

Shares of 446 companies were traded. At the end of the day, 306 stocks closed higher, 118 declined while 22 remained unchanged. The value of shares traded during the day was Rs17.7 billion.

Pace (Pakistan) Limited was the volume leader with 54.9 million shares, gaining Rs1.00 to finish at Rs8.28. It was followed by TRG Pakistan Limited with 53.9 million shares, gaining Rs1.92 to close at Rs40.47 and Japan Power with 21.6 million shares, gaining Rs0.78 to close at Rs5.55.

Foreign institutional investors were net buyers of Rs2.6 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, September 8^th, 2016.

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