Benchmark KSE 100-share Index rises 20.96 points
KARACHI: The benchmark-100 index gained marginally Monday, guided by Sunday’s announcement by The Abraaj Group that it has entered a definitive agreement to divest 66.4% shareholding in K-Electric (KEL) to the Shanghai Electric Power Company Limited (SEP) for a consideration of $1.77 billion.
The wider market traded dull and excitement was limited to select stocks before political noise took centre stage yet again with the KSE-100 Index losing most of its gains to end almost flat.
At close on Monday, the Pakistan Stock Exchange’s benchmark KSE 100-share Index gained 0.05% or 20.96 points.
Elixir Securities analyst Ali Raza said Pakistan equities closed marginally positive on a day that saw mid-day gains being wiped out as investors resorted to late profit-booking in the wake of uncertain political climate.
“The wider market opened sideways and traded dull in early hours with mainboard names fetching little interest. However, three stocks that bucked the trend and led early volumes were KEL +2.5%, Sui Northern Gas +2% and Sui Southern Gas +1.4%.”
Raza said the country’s largest listed electric utility surged as sponsors announced that a definite agreement reached with SEP at 11% premium to Friday’s closing, while Gas Discos garnered favour amid talks of favorable concessions in tariff that could further augment their bottom-lines.
“Market witnessed mid-day rally as index tested 40,150 level pushed primarily by index heavy Habib Bank +1.2%, United Bank +0.8%, MCB Bank -1% and Lucky Cement +0.8%. However, gains proved short-lived as investors grabbed the opportunity and booked profits.”
JS Global analyst Nabeel Haroon said bulls dominated the day as the index gained 21 points to close on 39,894.
“PNSC (+1.8%) continued its post result momentum, as the shipping company announced that it has decided to introduce to and fro ferry service from Port Qasim.”
“Netsol (+4.8%) also closed up on strong 1QFY17 result announcement, said Haroon.
Trade volumes fell to 237 million shares compared with Friday’s tally of 329 million.
Shares of 414 companies were traded. At the end of the day, 228 stocks closed higher, 165 declined while 21 remained unchanged. The value of shares traded during the day was Rs7.57 billion.
KEL was the volume leader with 40.7 million shares, gaining Rs0.23 to finish at Rs9.33. It was followed by Bank of Punjab with 25.4 million shares, losing Rs0.13 to close at Rs15.61 and Sui Southern Gas with 12.1 million shares, gaining Rs0.55 to close at Rs38.71.
Foreign institutional investors were net buyers of Rs261 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, November 1st, 2016.
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