Market watch: Index’s positive run continues
Benchmark KSE 100-share Index rises 295.59 points
Benchmark KSE 100-share Index rises 295.59 points
KARACHI:
The benchmark-100 index continued its northwards journey, ending positive for the fifth successive session and conquering new territory along the way as it inched up to the 44,500-point mark.
An increase of 295.59 points on Wednesday was propelled by gains in cement and select index names.
At close, the Pakistan Stock Exchange’s benchmark KSE 100-share Index finished with a rise of 0.67% or 295.59 points to finish at 44,494.99.
Elixir Securities analyst Ali Raza said Pakistan equities sailed further into unchartered territory as gains in cements and select index names pushed benchmark KSE100 index near 44,500 level. “Day kicked off on a positive note as cement stocks drove early gains on reported buying by local investors while select index names also followed suit and eked out modest gains,” said Raza.
“Exploration and production on the other hand traded in red from the word go as investors’ tracked dip in global crude and booked recent gains.”
Raza said that despite early surge, wider market didn’t stay green for long with court proceedings lading to anxiety and confusion that paved way for mid-day panic-selling as index nosedived into red.
Market recovered soon after and value buyers yet again made a strong entry given no major decision and possible formation of a judicial commission; a move that could possibly delay the outcome and ease anxiety among equity investors, said Raza.
“Volumes in wider market were encouraging with 470 million shares exchanging on PSX (turnover on KSE100 was highest today since July this year).”
Raza added that K-Electric (KEL,+0.1%) closed positive after testing near record intraday high as the new buyer (Shanghai Electric Power Company) unveiled a massive investment plan worth $9 billion to improve transmission, distribution and generation systems of the company.
JS Global analyst Nabeel Haroon said that volatility prevailed in the market as the index traded between an intraday high of +346 points and intraday low of -92 points to finally close at its new high of 44,495 (+295 points).
“This volatility was on the back of high profile case hearing in Supreme Court,” said Haroon.
“Cement sector continued its previous day momentum, as the sector gained to close 2.50% higher than its previous day close.”Indus Motor (+1.92%) in the automobile sector gained on the back of news that the automobile assembler has introduced new models for Hilux and Fortuner, respectively, said Haroon.
Trading volumes rose to 470 million shares compared with Tuesday’s tally of 372 million.
Shares of 420 companies were traded. At the end of the day, 166 stocks closed higher, 235 declined while 19 remained unchanged. The value of shares traded during the day was Rs20.8 billion.
Bank of Punjab was the volume leader with 79.7 million shares, losing Rs1.00 to finish at Rs17.76. It was followed by K-Electric with 43.1 million shares, gaining Rs0.01 to close at Rs9.42 and Aisha Steel with 19.6 million shares, gaining Rs0.32 to close at Rs14.67.
Foreign institutional investors were net sellers of Rs123 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, December 8th, 2016.
The benchmark-100 index continued its northwards journey, ending positive for the fifth successive session and conquering new territory along the way as it inched up to the 44,500-point mark.
An increase of 295.59 points on Wednesday was propelled by gains in cement and select index names.
At close, the Pakistan Stock Exchange’s benchmark KSE 100-share Index finished with a rise of 0.67% or 295.59 points to finish at 44,494.99.
Elixir Securities analyst Ali Raza said Pakistan equities sailed further into unchartered territory as gains in cements and select index names pushed benchmark KSE100 index near 44,500 level. “Day kicked off on a positive note as cement stocks drove early gains on reported buying by local investors while select index names also followed suit and eked out modest gains,” said Raza.
“Exploration and production on the other hand traded in red from the word go as investors’ tracked dip in global crude and booked recent gains.”
Raza said that despite early surge, wider market didn’t stay green for long with court proceedings lading to anxiety and confusion that paved way for mid-day panic-selling as index nosedived into red.
Market recovered soon after and value buyers yet again made a strong entry given no major decision and possible formation of a judicial commission; a move that could possibly delay the outcome and ease anxiety among equity investors, said Raza.
“Volumes in wider market were encouraging with 470 million shares exchanging on PSX (turnover on KSE100 was highest today since July this year).”
Raza added that K-Electric (KEL,+0.1%) closed positive after testing near record intraday high as the new buyer (Shanghai Electric Power Company) unveiled a massive investment plan worth $9 billion to improve transmission, distribution and generation systems of the company.
JS Global analyst Nabeel Haroon said that volatility prevailed in the market as the index traded between an intraday high of +346 points and intraday low of -92 points to finally close at its new high of 44,495 (+295 points).
“This volatility was on the back of high profile case hearing in Supreme Court,” said Haroon.
“Cement sector continued its previous day momentum, as the sector gained to close 2.50% higher than its previous day close.”Indus Motor (+1.92%) in the automobile sector gained on the back of news that the automobile assembler has introduced new models for Hilux and Fortuner, respectively, said Haroon.
Trading volumes rose to 470 million shares compared with Tuesday’s tally of 372 million.
Shares of 420 companies were traded. At the end of the day, 166 stocks closed higher, 235 declined while 19 remained unchanged. The value of shares traded during the day was Rs20.8 billion.
Bank of Punjab was the volume leader with 79.7 million shares, losing Rs1.00 to finish at Rs17.76. It was followed by K-Electric with 43.1 million shares, gaining Rs0.01 to close at Rs9.42 and Aisha Steel with 19.6 million shares, gaining Rs0.32 to close at Rs14.67.
Foreign institutional investors were net sellers of Rs123 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, December 8th, 2016.