Market watch: Index ends at all-time high, volume breaks decade-old record

Benchmark KSE-100 index rises 147.33 points

KARACHI: Led by small caps and backed by retail participation, the stock market ended positive to close at its highest level with positive news flow adding to the buying excitement.

Volumes touched a record level amid buying euphoria in second- and third-tier stocks, pushing up prices on the back of speculation. Impressive car sales added to the sector’s recent gains as well.



At close on Friday, the Pakistan Stock Exchange’s benchmark KSE-100 index rose 0.37% or 147.33 points to end at 40,363.68.

Elixir Securities analyst Faisal Bilwani said equities closed positive with benchmark KSE-100 index settling at a new all-time high helped by buying frenzy in second and third tier stocks as retail investors continued to trade aggressively.

“Activity skyrocketed with KSE All-Share stealing the show as volumes made a fresh record of nearly 900 million shares, highest in over 10 years (most since March 2005).

“The day kicked off on a positive note with side-board plays opening gap up and leading early gains while activity in blue-chip sectors - namely cements and financials - remained relatively thin in absence of major triggers.

“Oil stocks, however, rebounded despite weaker global crude on reported institutional buying, while autos were mostly at upper price limits after Thursday’s better than expected monthly sales data.”

JS Global analyst Nabeel Haroon said positivity prevailed with major activity being observed in second and third tier stocks, as the volume touched an 11-year high.

“Automobile sector led the gains on the back of auto sales numbers released by PAMA, which showed month-on-month growth of 27% for the month of August 2016. Indus Motor (INDU) and Honda Atlas Cars (HCAR) were major gainers of the aforementioned sector.

“Investor interest was seen in the chemicals sector on the back of depressed crude oil prices, as it closed (+2.1%) higher from its previous day close. Berger Paints (BERG) and AKZO Nobel were top performers of the aforementioned sector, as they surged to close on their respective upper circuits. Moving forward we recommend a cautious approach in the market.”



Trade volumes rose to 851 million shares compared with Thursday’s tally of 531 million shares.

Shares of 430 companies were traded on Friday. At the end of the day, 285 stocks closed higher, 129 declined while 16 remained unchanged. The value of shares traded during the day was Rs16.7 billion.

WorldCall Telecom was the volume leader with 114.9 million shares, gaining Rs0.76 to finish at 2.83. It was followed by the Bank of Punjab with 69.5 million shares, gaining Rs0.97 to close at Rs12.28 and NIB Bank Limited with 58.1 million shares, gaining Rs0.27 to close at Rs2.23.

Foreign institutional investors were net sellers of Rs336 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, September 17^th, 2016.

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