Market watch: Stocks bounce back with a bang

Benchmark KSE 100-share Index gains 698.19 points

KARACHI: The stock market snapped its losing streak on Wednesday and the benchmark index jumped 698.19 points to end the trading session above 49,000 points.

Index-favourite stocks rose massively as political cloud subsided and investors gained confidence.

At close, the Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index recorded a rise of 1.43% to end at 49,455.86.

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Elixir Securities analyst Ali Raza said Pakistan equities snapped a three-day losing streak and closed with sharp gains as the benchmark index surged 1.4% to settle near 49,500.

“The market opened positive and traded higher with sectors such as consumer, industrial and pharma leading gains on reported local buying,” said Raza.

“Moreover, a lower inflation reading of 3.66% year-on-year for January 2017 and delay in court hearing on Panama Papers leaks also helped the wider market sentiments.”

Most steel players closed the day at their respective upper price limits after International Steels (+5%) notified the exchange of plans to increase its capacity.

“Engro Foods (+5%) too hit the upper price limit as it came under investor radar on news of FrieslandCampina, the new parent company of Engro Foods, possibly investing an additional $100 million in the next few years,” said Raza.

Market watch: Bourse sets new record, crosses 50,000 points

Topline Securities analyst Hammad Aman said the delay in Panama case hearing led the bourse to gain 698 points. Additionally, Hub Power Company pushed the index up with a contribution of 76 points.

Aman added news that FrieslandCampina would invest $100 million over the next two years led Engro Foods to close at its upper price limit.

Trading volumes fell to 356 million shares compared with Tuesday’s tally of 316 million.

Shares of 417 companies were traded. At the end of the day, 311 stocks closed higher, 89 declined while 17 remained unchanged. The value of shares traded during the day was Rs20.3 billion.

K-Electric Limited was the volume leader with 68.6 million shares, losing Rs0.12 to finish at Rs10.28. It was followed by Dost Steels Limited with 19.2 million shares, gaining Rs1 to close at Rs14.13 and Aisha Steel Mills with 18.6 million shares, gaining Rs1.07 to close at Rs23.64.

Foreign institutional investors were net sellers of Rs876 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.