Market watch: Index’s hot streak continues, gains 587 points

Benchmark KSE 100-share Index goes up to 48,827.55

KARACHI: The KSE-100 Index continued to advance, powering through for the seventh successive positive finish to inch closer to the 49,000-point mark.

Led by blue-chip stocks, investors continued to place their confidence to help the index gain 587.27 points to add to its record high level.



At close on Tuesday, the Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index recorded a rise of 1.22% or 587.27 points to end at 48,827.55.

Elixir Securities analyst Faisal Bilwani said Pakistan equities continued to rally at full throttle led by persistent and unprecedented buying from local money managers that pushed benchmark KSE100 Index to a new high near 49K.

“Activity witnessed a remarkable surge as turnover on benchmark KSE100 index nearly eclipsed the record of $206 million, seen in January 2015.” After a brief positive open, said Bilwani, stocks traded volatile and witnessed a short phase of profit-taking that pulled benchmark KSE100 index in the red and below 48K level on yesterday’s remarks and notification by SECP cautioning brokers over compliance matters.

“However, steady strong flows from both local and foreign investors in notable bluechips not only helped the rebound but sent stocks across financials, fertilisers, oils and cements soaring to new highs.”

Notably, oils were higher as they tracked global crude while excitement in textiles was primarily driven by bets on hopes of announcement of a relief package, said Bilwani.

JS Global analyst Nabeel Haroon said positivity prevailed in the market on the second trading session of 2017, as the index rallied to close at its new high level of 48,827. “Exploration and production sector closed in the green as the oil prices rose sharply in the second trading session of 2017,” said Haroon.

“Oil and gas development corporation (+2.76%), Pakistan petroleum limited (+2.71%) and Pakistan oilfields limited (+2.51%) were the top performers of the aforementioned sector.

“Mixed sentiments were witnessed in the banking sector as there was a decline in month-on-month CPI number by 0.5% to 3.7% for the month of December 2016.”

Trading volumes rose to 501 million shares compared with Monday’s tally of 376 million.



Shares of 430 companies were traded. At the end of the day, 208 stocks closed higher, 199 declined while 23 remained unchanged. The value of shares traded during the day was Rs27.1 billion.

Dost Steels Limited was the volume leader with 61.7 million shares, gaining Rs0.17 to finish at Rs13.29. It was followed by K-Electric Limited with 28.8 million shares with no change to close at Rs9.52 and Engro Polymer with 21.2 million shares, gaining Rs0.53 to close at Rs18.99.

Foreign institutional investors were net buyers of Rs140 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, January 4^th, 2017.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.