market watch: Index settles at record high as bullish run remains

Benchmark KSE 100-share Index rises 442.88 points

KARACHI: The benchmark-100 index managed to record a fresh high, closing at 41,742.75 points on Wednesday, as political uncertainty eased and positive triggers took centre stage to ease investors.

At close on Wednesday, the Pakistan Stock Exchange’s benchmark KSE 100-share index finished with a gain of 1.07% or 442.88 points to end at 41,742.75.

Elixir Securities analyst Ali Raza said equities closed another day with handsome gains as the dust over political unrest settled.



“Market opened gap up and gained steadily on good volumes as retail investors increasingly participated in the wider market in a bid to cover back earlier sold positions.

“Institutional flows primarily in blue chips also kept the momentum going and supported the upward ride. Financial, cement, steel and automobile sectors closed higher with many notable names from each sector closing at their respective upper price limits; however, exploration and production (E&P) and fertiliser sectors failed to perform and witnessed profit-taking.

“We expect volatility to increase and may see dip in volumes as locals, primarily institutional investors, trade cautiously tracking key court proceedings.”

Meanwhile, JS Global analyst Nabeel Haroon said the market continued its positive momentum on the back of settling political tensions.

“E&P sector remained under pressure on the back of decline in crude oil prices. News of increase in US stock piles came as a major blow to the already declining crude oil prices. Pakistan Oilfields (POL -1.53%) and Pakistan Petroleum (PPL -0.97%) were major laggards of the aforementioned sector.



“Banking sector continued to garner investor interest on the back of higher than expected CPI number for the month of October 2016, which clocked in at 4.21% year-on-year (YoY). HBL (+3.54%) and MCB (+0.74%) were major index movers from the aforementioned sector.

“Moving forward, we reiterate our bullish stance on the market and recommend investor to see any dips as a buying opportunity.”

Trade volumes rose to 696 million shares compared with Tuesday’s tally of 507 million.

Shares of 439 companies were traded. At the end of the day, 276 stocks closed higher, 145 declined while 18 remained unchanged. The value of shares traded during the day was Rs21.8 billion.

K-Electric Limited was the volume leader with 47.1 million shares, losing Rs0.10 to finish at Rs9.50. It was followed by Dost Steel (R) with 30.9 million shares, gaining Rs0.08 to close at Rs3.71 and Summit Bank with 30.2 million shares, gaining Rs0.02 to close at Rs3.60.

Foreign institutional investors were net buyers of Rs1.24 billion during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, November 3^rd, 2016.

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