Market watch: KSE-100 rises over 500 points on local institutional interest
Cherry-picking of stocks takes benchmark index to 46,533 points
PHOTO: FILE
KARACHI:
Local investors seemed to be getting on the front foot in the stock market on Tuesday as uncertainty surrounding the government's fate faded away.
Stocks followed an upward trajectory from the word go, although the benchmark index traded in a narrow range for most part of the day due to apprehensions about recent heavy foreign investor selling.
Selective buying in cherry-picked stocks, especially steel, oil, financial and cement, however, helped maintain the momentum that allowed the benchmark KSE 100-share Index to rise 522.98 points or 1.14% to end at 46,533.43.
According to Elixir Securities, Pakistan equities closed higher on the back of gains in select index names.
"Stocks opened positive, yet the benchmark index traded in a narrow range for most part of the day as participants, perturbed about the recent bout of foreigners' selling, traded cautiously," Elixir stated.
After close to 1,200-point surge, KSE-100 ends marginally positive
"From the outset, steel plays were in the limelight on positive morning news of an increase in customs duty on the import of steel coils while Habib Bank (HBL, -3.7%) opened gap down and received a hammering again on foreign selling amidst rumours about the bank's New York branch getting fined on non-compliance."
Although the announcement about inflation at 2.91% year-on-year for July during the day failed to bring any excitement, activity improved in the final 90 minutes as local institutions turned selective buyers in oil, financial, cement and select sideboards.
They cherry-picked stocks of Pakistan State Oil (+5%), Oil and Gas Development Company (OGDC, +2%), United Bank (+1.8%), Engro Corp (+4.2%), Maple Leaf Cement (+3.1%) and DG Khan Cement (+2.1%).
Meanwhile, Synthetic Power (-3.7%), in material notification to the exchange, announced the winding up of its wholly owned subsidiary SPEL Pharmatec.
"Flows will remain crucial as the market gradually builds momentum and the benchmark index retests highs near 48,000," the report added.
Weekly review: KSE-100 edges up 1.4% as direction slightly clearer
JS Global analyst Maaz Mulla said the index remained positive throughout the day and closed at 46,533, about 523 points above the last closing.
"Investor sentiment was bullish on account of political certainty and improved inflation numbers, which came in at 2.91% for the month of July. Byco (+4.6%) gained on the back of news that it would resume production at its 120,000-barrel-per-day refinery," he said.
"Aisha Steel (+5%) and International Steels (+5%) closed at their upper circuits as the Customs increased import duty on steel, thereby giving advantage to the local steel industry."
The cement sector also flourished as cement prices increased Rs10-15 per bag. Cherat Cement (+1%), Maple Leaf Cement (+3.1%) and DG Khan Cement (+2.1%) were among major gainers in the cement sector.
The exploration and production sector gained due to rising oil prices. OGDC (+2%) and Pakistan Oilfields (+4.1%) were major gainers of the sector.
PM no more Sharif, but stock market recovers
HBL continued its downward trend on account of rumours regarding possible penalisation of the bank due to compliance issues in its New York branch. The stock contributed -127 points to the index, he said.
"The market is expected to recover in coming days, therefore, we recommend investors to trade in main board stocks and take long-term positions to benefit from undervalued stock prices," the analyst said.
Overall, trading volumes fell to 256 million shares compared with Monday's tally of 319 million.
Shares of 393 companies were traded. At the end of the day, 274 stocks closed higher, 104 declined while 15 remained unchanged. The value of shares traded during the day was Rs17.6 billion.
Azgard Nine was the volume leader with 21.8 million shares, gaining Rs0.01 to close at Rs15.12. It was followed by TRG Pakistan with 16.3 million shares, gaining Rs1.90 to close at Rs43.72 and Aisha Steel Mills with 15.5 million shares, gaining Rs1.02 to close at Rs21.49.
Foreign institutional investors were net sellers of Rs694 million during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.
Local investors seemed to be getting on the front foot in the stock market on Tuesday as uncertainty surrounding the government's fate faded away.
Stocks followed an upward trajectory from the word go, although the benchmark index traded in a narrow range for most part of the day due to apprehensions about recent heavy foreign investor selling.
Selective buying in cherry-picked stocks, especially steel, oil, financial and cement, however, helped maintain the momentum that allowed the benchmark KSE 100-share Index to rise 522.98 points or 1.14% to end at 46,533.43.
According to Elixir Securities, Pakistan equities closed higher on the back of gains in select index names.
"Stocks opened positive, yet the benchmark index traded in a narrow range for most part of the day as participants, perturbed about the recent bout of foreigners' selling, traded cautiously," Elixir stated.
After close to 1,200-point surge, KSE-100 ends marginally positive
"From the outset, steel plays were in the limelight on positive morning news of an increase in customs duty on the import of steel coils while Habib Bank (HBL, -3.7%) opened gap down and received a hammering again on foreign selling amidst rumours about the bank's New York branch getting fined on non-compliance."
Although the announcement about inflation at 2.91% year-on-year for July during the day failed to bring any excitement, activity improved in the final 90 minutes as local institutions turned selective buyers in oil, financial, cement and select sideboards.
They cherry-picked stocks of Pakistan State Oil (+5%), Oil and Gas Development Company (OGDC, +2%), United Bank (+1.8%), Engro Corp (+4.2%), Maple Leaf Cement (+3.1%) and DG Khan Cement (+2.1%).
Meanwhile, Synthetic Power (-3.7%), in material notification to the exchange, announced the winding up of its wholly owned subsidiary SPEL Pharmatec.
"Flows will remain crucial as the market gradually builds momentum and the benchmark index retests highs near 48,000," the report added.
Weekly review: KSE-100 edges up 1.4% as direction slightly clearer
JS Global analyst Maaz Mulla said the index remained positive throughout the day and closed at 46,533, about 523 points above the last closing.
"Investor sentiment was bullish on account of political certainty and improved inflation numbers, which came in at 2.91% for the month of July. Byco (+4.6%) gained on the back of news that it would resume production at its 120,000-barrel-per-day refinery," he said.
"Aisha Steel (+5%) and International Steels (+5%) closed at their upper circuits as the Customs increased import duty on steel, thereby giving advantage to the local steel industry."
The cement sector also flourished as cement prices increased Rs10-15 per bag. Cherat Cement (+1%), Maple Leaf Cement (+3.1%) and DG Khan Cement (+2.1%) were among major gainers in the cement sector.
The exploration and production sector gained due to rising oil prices. OGDC (+2%) and Pakistan Oilfields (+4.1%) were major gainers of the sector.
PM no more Sharif, but stock market recovers
HBL continued its downward trend on account of rumours regarding possible penalisation of the bank due to compliance issues in its New York branch. The stock contributed -127 points to the index, he said.
"The market is expected to recover in coming days, therefore, we recommend investors to trade in main board stocks and take long-term positions to benefit from undervalued stock prices," the analyst said.
Overall, trading volumes fell to 256 million shares compared with Monday's tally of 319 million.
Shares of 393 companies were traded. At the end of the day, 274 stocks closed higher, 104 declined while 15 remained unchanged. The value of shares traded during the day was Rs17.6 billion.
Azgard Nine was the volume leader with 21.8 million shares, gaining Rs0.01 to close at Rs15.12. It was followed by TRG Pakistan with 16.3 million shares, gaining Rs1.90 to close at Rs43.72 and Aisha Steel Mills with 15.5 million shares, gaining Rs1.02 to close at Rs21.49.
Foreign institutional investors were net sellers of Rs694 million during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.