Market watch: Breaking another record, index settles over 44,000

Benchmark KSE 100-share Index rises 459.43 points

KARACHI: The benchmark-100 index crossed the 44,000-point level for the first time in history, covering new ground as it ended another session in the positive.

Major upside came from the cement sector following APCMA’s announcement of the sector achieving capacity utilisation of 99% and increase in cement sales of 11% during November.

At close, the Pakistan Stock Exchange’s benchmark KSE 100-share Index recorded a rise of 1.05% or 459.43 points to finish at 44,199.40.



Elixir Securities analyst Faisal Bilwani said stocks opened marginally positive while the wider market gradually inched up as flows suggested no major foreign selling and rumours of aggressive local buying did the rounds.

“As court hearing on PM’s family case once again ended without any serious development, volumes spiked with cement sector leading gains on excitement over expected record sales for the outgoing month,” said Bilwani.

“Lucky Cements (LUCK, +1%), closed at a new record high near Rs750/sh while DG Khan Cement (DGKC) Maple Leaf Cement (MLCF) and Fauji Cement (FCCL) were among over ten listed stocks that gained 5% on the day.”

Bilwani added that Engro Foods (EFOODS,+5%) hit the upper price limit as last date to offer shares as part of public tender offer passed and stake sale and handover to FrieslandCampina comes closer to completion.

“Meanwhile, oils saw renewed interest mid-day as institutions cherry picked value plays on optimism over global crude with Oil & Gas Dev Co (OGDC,+1.3%) trading most volumes in over six months.”

Financials saw limited interest as focus tilted to industrials while K-Electric led volumes on KSE100 index and closed higher on green light by regulator on recent acquisition of the company by Shanghai Electric, said Bilwani.

JS Global analyst Nabeel Haroon said positive momentum continued in the market as the index gained around 459 points to close at record level of 44,199.

“Cement sector led the gains on the back of strong cement dispatch numbers released by APCMA which indicated 11% YoY growth in Nov-2016.”



Trading volumes rose to 372 million shares compared with Monday’s tally of 345 million.

Shares of 431 companies were traded. At the end of the day, 231 stocks closed higher, 186 declined while 14 remained unchanged. The value of shares traded during the day was Rs19.7 billion.

K-Electric was the volume leader with 22.8 million shares, gaining Rs0.18 to finish at Rs9.41. It was followed by Fauji Cement with 17.3 million shares, gaining Rs1.95 to close at Rs41.10 and Faysal Bank with 16.7 million shares, gaining Rs0.73 to close at Rs20.80.

Foreign institutional investors were net sellers of Rs1.38 billion during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, December 7^th, 2016.

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