KARACHI: The benchmark-100 index closed marginally positive after trading in a wide range of over 700 points that saw it go below the 48,500 level intra-day.
However, positive momentum helped carry the KSE-100 to close over 49,000, but not before security concerns and Panama case hearing took toll on stock market participants.
At close on Wednesday, the Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index finished with a rise of 0.16% or 80.61 points to end at 49,062.26.
Market watch: KSE-100 plunges 446.59 points to finish below 49,000
Elixir Securities, in its report, stated that the index started off on a negative note as the wider market lost ground in the morning on general lack of interest and dearth of serious buyers that led the benchmark KSE-100 Index to lose as much as 1% within the first 30 minutes of trading.
“It followed a shaky recovery that continued until mid-day on back of gains in select index names including Engro Corp (ENGRO PA +2%). However, participation remained relatively dull as investors treaded cautiously tracking institutional flows and developments on hearing over Panama case against the First Family,” said analyst Ali Raza.
“While the Court reserved judgement and kept verdict to a later date, market continued to remain volatile with news of an unfortunate incident of a blast in Lahore, keeping most investors on the lookout for direction,” he added.
“[We] expect participation to remain thin on Friday due to ongoing futures rollover week, however, institutional flows are expected to guide market next week.
“We reiterate accumulating MSCI EM names and advise caution in speculative sideboard plays,” said Raza.
KSE-100 crosses 50,000 points, touches record high
Meanwhile, JS Global analyst Nabeel Haroon said that pressure was witnessed at market opening as the index lost to make an intraday low of -507 points.
“This strain on market activity was on the back of prevailing political and law and order uncertainty. However, revive in market activity helped the index to close in the green zone (49,062 level),” said Haroon.
“OGDC (+0.34%), POL (+1.64%) and PPL (+0.03%) in the E&P sector gained to close in the green zone as crude oil prices rebounded to trade above $54/bbl level. This surge in crude oil prices was on the back of surprise decline in US oil inventory level,” the analyst added.
“Moving forward, we expect market to remain volatile and recommend investors to stay cautious on the last day of the futures rollover week,” said Haroon.
Trading volumes fell to 266 million shares compared with Wednesday’s tally of 379 million.
Shares of 411 companies were traded. At the end of the day, 179 stocks closed higher, 215 declined while 17 remained unchanged. The value of shares traded during the day was Rs13 billion.
Weekly review: Landmark week for KSE-100
K-Electric Limited was the volume leader with 19.6 million shares, gaining Rs0.10 to close at Rs9.75. It was followed Aisha Steel Mill with 19.4 million shares, gaining Rs0.34 to close at Rs26.13 and Power Cement Limited with 15.2 million shares, losing 0.23 to close at Rs19.43.
Foreign institutional investors were net sellers of Rs178 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.