PHOTO:FILE
KARACHI: The KSE-100 Index jumped over 703.92 points for a gain of 1.44% on Thursday as investors’ interest peaked following commitment from the Securities and Exchange Commission of Pakistan (SECP) and PSX management to curb illegal transactions taking place in brokerage houses.
At close, the KSE-100 Index - a benchmark for market performance - finished at 49,696.08 points.
Stocks opened positive and continued to garner attention as tension over strict action by the regulator subsided.
Market watch: Sea of green as index closes few points shy of 49,000
Elixir Securities analyst Ali Raza said Pakistan equities picked up strongly on Thursday and the benchmark KSE-100 index returned to the levels seen two weeks ago on across-the-board buying.
“Market opened and traded higher from the word go as stocks carried momentum from the previous day and extended gains while regulator's assurances on regulatory measures also helped in clearing the air of fear among brokers,” said Raza.
“Announcement of a planned inclusion of 6 notable bluechips in FTSE global equity index further lifted investors’ mood and led to a buying spree in the wider market.
“Index-heavy financials including Habib Bank (HBL, +3.1%) led the day's gains as inflation reading for February came higher at 4.22% year-on-year, against 3.66% year-on-year in January.”
JS Global analyst Nabeel Haroon said the market extended its gains to close at 49,696.
“Positivity can be attributed to SECP's assurances that in-house financing position of brokerage houses is no longer a matter of concern,” said Haroon.
“Banking sector led the rally as consumer price index number for Feb-2017 clocked in at 4.22% year-on-year versus 3.66% year-on-year in Jan-2017.
“Mari Petroleum Company Limited, Searle Company Limited, Engro Fertilizer, Fauji Cement Company Limited, and Nishat Mills Limited gained on news of inclusion in FTSE global equity index series Asia Pacific (ex-Japan Regional mid cap Index) in its semi-annual review.”
Market watch: Sea of green as index closes few points shy of 49,000
Trading volumes rose to 398.5 million shares compared with Wednesday’s tally of 234 million.
Shares of 420 companies were traded. At the end of the day, 294 stocks closed higher, 108 declined while 18 remained unchanged. The value of shares traded during the day was Rs17.7 billion.
Lotte Chemical was the volume leader with 58.3 million shares, gaining Rs1.00 to close at Rs11.82. It was followed K-Electric Limited with 29.3 million shares, gaining Rs0.34 to close at Rs9.95 and Aisha Steel Mill with 20.6 million shares, losing 0.56 to close at Rs9.95.
Foreign institutional investors were net sellers of Rs394 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
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