market watch: Stocks hit new peak, settle hair’s breadth below 42k

Benchmark KSE 100-share Index gains 231.71 points

KARACHI: With continuing pressure on exploration and production companies due to flagging international crude oil prices, the Pakistan bourse felt its impact on Thursday, but the banking sector helped it march upwards and hit a fresh record high.

The Pakistan Stock Exchange’s benchmark KSE 100-share Index recorded a rise of 0.56% or 231.71 points to end the day at 41,974.46.

According to Elixir Securities’ analyst Ali Raza, the equities extended bull-run for the third consecutive day with the benchmark index settling at the new record close near 42,000 points.



The market opened sideways and drifted lower with index-heavy exploration and production (E&P) sector weighing on the benchmark index in early trade as investors tracked declines in global crude.

“The wider market, however, quickly found support and gained steadily thereafter helped by institutional buying in index names. Financials drove the benchmark index to new highs with Habib Bank (+3.6%) once again topping the leaders board on reported foreign buying and contributing the most to the index gains (109 points), followed by United Bank (+1.9%) , MCB Bank (+1.1%) and National Bank (+1.8%).”

On the flip side, the fertiliser and cement stocks remained under pressure and recorded profit-booking. Most activity was concentrated in small and mid-cap plays with retail-favourite The Bank of Punjab (+4.9%) once again dominating the volumes chart as investors bet on the bank’s turnaround story.

“We see the market consolidating gains near current levels and expect range-bound trading on Friday (today) as the benchmark KSE-100 index has increased by over 2,000 points or 5.2% in three trading sessions.”

Meanwhile, JS Global analyst Nabeel Haroon said positivity prevailed in the market as the index surged 232 points. “The E&P sector continued to remain under pressure on the back of downward spiralling global crude oil prices due to surging US crude stockpiles.”



Pakistan Oilfields (-1.14%) was the major laggard of the sector. However, Oil and Gas Development Company (+0.02%) closed in the green after reaching new levels of crude oil production, in addition to fresh gas exploration activities.

Furthermore, investors booked profits in the cement sector on the back of increase in global coal prices. Maple Leaf (-1.71%), DG Khan (-1.10%) and Fecto (-1.69%) lost value in the sector.

Similarly, the pharmaceutical sector came under pressure as the Competition Commission issued a show-cause notice to the Pharma Bureau.

“Moving forward, we expect positive momentum to continue, taking the index to previously uncharted territory, therefore, accumulation is advised,” Haroon said.

Trading volumes fell to 529 million shares compared with Wednesday’s tally of 696 million.

Shares of 429 companies were traded. At the end of the day, 197 stocks closed higher, 210 declined while 22 remained unchanged. The value of shares traded during the day was Rs19.2 billion.

The Bank of Punjab was the volume leader with 61.1 million shares, gaining Rs0.87 to finish at Rs18.48. It was followed by Dost Steel (R) with 51.3 million shares, gaining Rs0.14 to close at Rs3.85 and Sui Southern Gas Company with 26.3 million shares, gaining Rs2.12 to close at Rs44.70.

Foreign institutional investors were net buyers of Rs393 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, November 4^th, 2016.

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