KARACHI: The benchmark index witnessed a volatile ride on Thursday as investors continued to be concerned over possible outcomes of the Securities and Exchange Commission Pakistan’s ruling against marginal financing.
As a result, the market witnessed a dip, touching a low of -22 points after booking an intra-day high of +475 points.
At close, however, the Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index finished with a rise of 0.42% or 210.11 points to end at 49,665.97.
Trading volumes rose to 447 million shares compared with Wednesday’s tally of 356 million.
Elixir Securities analyst Ali Raza said equities maintained their northbound ride with the benchmark KSE-100 Index settling above 49,600 despite witnessing mid-day profit-taking.
“Market carried momentum and opened higher with index heavy oils leading early gains as investors’ tracked rise in global crude, while sideboards in autos, steel and pharma sectors that led the rally (on Wednesday).
“Later on, the index became a victim of profit-taking and erased all gains to enter the negative territory. However, index heavy oils saved the day in final hours of trading as they tracked surge in global crude.
“Highlight of the day was Pakistan State Oil (+5%) that closed at upper price limit on reported local buying ahead of its earnings announcement over the weekend.”
Meanwhile, said Raza, Oil and Gas Development Company (+1.1%) bounced back from bottom while Fauji Foundation (FFC,-1.2%) traded marginally lower on news of government’s decision to offload its stake in Mari Petroleum (+4.1%).
JS Global analyst Nabeel Haroon said positivity prevailed during most of the day, as the index gained to make an intraday high of +478 points.
“Pressure was witnessed in the market for a brief period of time as it lost ground to make an intraday low 29 points,” said Haroon. “This pressure was short lived as index recovered during the latter hours to close 210 points higher than its previous day close.
“International Steel Limited gained to close on its upper circuit for the second consecutive day of the week on the back of the expansion plan announced by the company on Wednesday, said Haroon.
Shares of 426 companies were traded. At the end of the day, 199 stocks closed higher, 213 declined while 14 remained unchanged. The value of shares traded during the day was Rs24.1 billion.
Dost Steels Limited was the volume leader with 57.6 million shares, gaining Rs0.60 to finish at Rs14.73. It was followed by K-Electric Limited with 42.7 million shares, gaining Rs0.13 to close at Rs10.41 and TRG Pakistan Limited with 32.4 million shares, gaining Rs1.83 to close at Rs58.63.
Foreign institutional investors were net sellers of Rs651 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, February 3rd, 2017.
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