Market watch: Index ends positive, surpasses 49,000

Benchmark KSE 100-share Index rises 85.97 points

KARACHI: Pakistan equities managed a positive close in a volatile session where the benchmark KSE-100 Index traded in a range of 400 points.

At close on Tuesday, the Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index finished with a rise of 0.18% or 85.97 points to end at 49,015.09.

Elixir Securities, in its daily report, said the stocks opened lower, continuing with Monday’s momentum, with the KSE-100 Index testing the 48,700 level (-272 points) earlier in the day.

“However, value buying at lows primarily in Index names helped the market recover and trade in the green zone,” said analyst Ali Raza.

“Near day's end, intra-day surge in global crude also lent a hand that led to index heavy Oil and Gas Development Company (OGDC PA +1.4%) topping the leaders’ board,” he said.

“Meanwhile, Kot Addu Power (KAPCO PA +0.2%) closed flat despite announcing subpar earnings. Overall, lacklustre activity was again witnessed with both volume and value on KSE-100 Index remaining little changed,” said Raza.



“Lack of clarity on market direction amid lower institutional participation, ongoing court hearing of Panama case and a terror attack near mid-day in northwest Pakistan likely kept most investors cautious and at bay,” he added.

JS Global analyst Nabeel Haroon said volatility prevailed in the market as the index traded between an intraday high of +174 points and an intraday low of -273 points to finally close at 49,015.

“Banking sector extended its previous day’s gains as it gained to close (+0.4%) higher. HBL (+0.35%), MCB (+0.52%) and UBL (+0.73%) were among the major index movers from the aforementioned sector,” said Haroon.

“Selling pressure was witnessed in the fertiliser sector, as it lost value to close (-0.5%) lower than its previous day’s close. FFC (-0.55%) and FFBL (-1.40%) were among the major losers of the fertiliser sector,” he remarked.

“ASL in the steel sector gained to close +4.28% on the back of investor anticipation that court will maintain antidumping duty status imposed by NTC on dumped imports of cold rolled coils and galvanised steel being imported from China in its hearing on Wednesday.



“KAPCO (+0.17%) in the power sector gained as the company declared its 1HFY17 result, in which it posted EPS of Rs4.74/share along with first interim dividend of Rs4.30/share, the analyst stated.

“OGDC (+1.40%), POL (+1.50%) and PPL (+0.33%) in the E&P sector gained to close in the green zone as crude oil prices surged to trade around $54/bbl level.

“Moving forward, we expect market to remain volatile and recommend investors to stay cautious in the ongoing futures' rollover week,” Haroon added.

Trading volumes fell to 343 million shares compared with Monday’s tally of 344 million.

Shares of 418 companies were traded. At the end of the day, 162 stocks closed higher, 238 declined while 18 remained unchanged. The value of shares traded during the day was Rs13.9 billion.



Power Cement Limited was the volume leader with 36.2 million shares, losing Rs1.04 to close at Rs20.65. It was followed by K-Electric Limited with 34.8 million shares, gaining Rs0.03 to close at Rs9.81 and Aisha Steel Mill with 29.4 million shares, gaining 1.11 to close at Rs27.06.

Foreign institutional investors were net sellers of Rs572 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.