Market watch: KSE-100 jumps over 1,050 points as investors buy in droves

Benchmark-100 index rises 2.33% to end at 46,273.81

PHOTO: AFP

KARACHI:
Stocks bounced back in emphatic fashion on Monday, as the joint investigation team (JIT) probing allegations of money-laundering against Prime Minister Nawaz Sharif and his family submitted its report to the Supreme Court.

The index started off with a 500-point plunge in the morning after news that the Federal Investigation Agency (FIA) has found Zafar Hijazi - chairman of the Securities and Exchange Commission of Pakistan - guilty of tampering records of companies owned by the Sharif family.

But cherry-picking across index names meant the KSE-100 recovered steadily and continued its ride in the positive. However, the major boost came when it was reported that the Supreme Court had adjourned the Panama case for a week.

Following this news, investors took advantage of attractive valuations and bought shares in droves as the KSE-100 Index - a benchmark for market performance - finished with a gain of 2.33% or 1,051.66 points to end at 46,273.81.

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Elixir Securities, in its report, stated equities surged with benchmark KSE-100 Index settling up 2.3% over 46,200 level on institutional buying.

"A lacklustre open and a brief sideways trading was followed by sharp gains as participants primarily local institutional investors turned to buying in index names on rumours that report, due later in the day by investigative committee to Supreme Court in case against First family, may not be as damaging as earlier expected," Elixir stated.

Stocks then witnessed volatility and KSE-100 Index traded in a range of over 500 points, however, the final 60 minutes of trading again turned in bulls' favour as Supreme Court delayed probe hearing till next week lifting investors' moods.

Blue-chips primarily led gains with 79 names on KSE-100 index closing up while only eight stocks closed in the red and 13 remained unchanged.




FIA finds SECP chief guilty of tampering with record of Sharifs’ companies

"[We] see relief rally to continue this week with Index names inching up and wider market seeing improved turnover as benchmark KSE-100 Index attempts to retest important resistance level near 48,000," the report added.

JS Global analyst Arhum Ghous said the market witnessed major recovery after making an intra-day low of -512 points, as the benchmark KSE-100 index closed 1,052 points higher at 46,274.

"MCB (+3.43%) and ABL (+4.82%) led the charts in commercial banks, while other scrips from the sector also closed in the green zone including HBL (+1.65%), UBL (+0.51%), MEBL (+2.95%) and NBP (+2.39%)," said Ghous.

SSGC (+4.68%) and PPL (+4.24%) closed higher than their previous day close on the back of increase in wellhead gas price of Sui gas field. Steel sector saw positivity on the back of news that some manufacturers have increased CRC prices, propelling ASL (+5.07%), ISL (+5%), DSL (+6.73%) and MUGHAL (+5%).

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"We expect the market to continue its positive momentum and recommend investors to book gains on strength," he added.

Overall, trading volumes rose to 235 million shares compared with Friday's tally of 132 million.

Shares of 355 companies were traded. At the end of the day, value of 279 stocks closed higher, 60 declined while 16 remained unchanged. The value of shares traded during the day was Rs12.8 billion.

Bank of Punjab was the volume leader with 21.7 million shares, gaining Rs0.55 to close at Rs12.10. It was followed by TRG Pakistan with 16.8 million shares, gaining Rs1.79 to close at Rs37.72 and Summit Bank with 10 million shares, gaining Rs0.96 to close at Rs5.46.

Foreign institutional investors were net sellers of Rs472 million during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.
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