KSE-100 posts 399-point gain

Benchmark-100 index rises 0.89% to end at 45,222.15

KARACHI: The KSE-100 Index recovered to end 0.89% higher on Friday, ending the week over the 45,200 level with oil and cement stocks leading the way.

After a subdued morning session amid dull activity, the market saw a brief bullish ride before profit-taking took the shine off intra-day gains.

However, by close of trading, the benchmark KSE 100-share Index finished with an increase of 399.03 points or 0.89%. It ended at 45,222.15.

Elixir Securities, in its report, stated equities closed the last day of the week positive as late buying pushed the KSE-100 above 45,000.



“Turnover remained low with little excitement in early trade, however, activity and market both picked up in PM session on rumours that investigative authority probing first family has received significant documentation to satisfy top court’s concerns,” stated Elixir.

“Oils led the bounce followed by other key blue chips namely Engro Corp (ENGRO PA +3.4%) and Pakistan State Oil (PSO PA +1.8%) on reported institutional buying.

“Moreover, corporate announcements by Pakistan Petroleum (PPL PA +4%) of retrospective application of Sui’s wellhead gas prices based on 2012 PP at 55% discount helped its stock to close up while release of poor monthly productions and sales number by Sazgar Engineering Works (SAZEW PA -3.7%) disappointed investors.

“We see domestic politics to remain key in setting the direction in days ahead as investors will closely track developments on Monday July 10, when investigative committee presents its findings to Supreme Court in the case against PM’s family.

“Any hint of PM managing to survive the ongoing legal battle will bring significant upside in the wider market,” the report added.

JS Global analyst Arhum Ghous said the market remained volatile throughout the day, making an intraday low of -274 points and high of +469 points to finally close at 45,222 (+399 points).

“Sentiments turned positive at the eleventh hour as buyers jumped in to cherry pick value stocks,” said Ghous.



“Major contribution to the index came from MTL (+2.67%), ENGRO (+3.42%) and ATRL (+2.55%) as they cumulatively contributed +25 points to the index. On the other hand, major laggards were HCAR (-2.35%), INDU (-0.42%) and UBL (-2.69%).

“PPL in the E&P sector gained (+3.95%) on back of material information with respect to new wellhead gas pricing of Sui gas field,” the analyst remarked.

The determined price is now equivalent to 55% of the natural gas price under the Petroleum Exploration & Production Policy 2012 and effective retroactively as of June 1, 2015.

Steel sector gained on account of noise in the market that CRC prices have been increased, where DSL (+4.53%), ASTL (+3.27%), INIL (+3.26%) and ASL (+3.44) were the major gainers of the sector.

“The market is expected to stay under pressure, therefore we recommend investors to stay cautious.”

Overall, trading volumes fell to 132 million shares compared with Thursday’s tally of 146 million.

Shares of 329 companies were traded. At the end of the day, value of 237 stocks closed higher, 79 declined while 13 remained unchanged. The value of shares traded during the day was Rs6.9 billion.

TRG Pakistan was the volume leader with 15.8 million shares, gaining Rs1.58 to close at Rs35.93. It was followed by Pak Elektron with 9.5 million shares, gaining Rs0.25 to close at Rs96 and Bank of Punjab with 9 million shares, gaining Rs0.38 to close at Rs11.55.

Foreign institutional investors were net sellers of Rs95 million during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, July 8^th, 2017.

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