Market watch: KSE-100 Index recovers, finishes few points shy of 46,000

Benchmark index gains 19.11 points, closes at 45,998.81

KARACHI: The stock market witnessed sharp swings throughout the day and bounced back from Tuesday’s session to close positive.

The KSE-100 Index opened in the red zone and fell 386 points in the first two hours of trading. This downward trend was encouraged by muted activity due to lack of serious buyers and the current political situation; as the former prime minister Nawaz Sharif embarked on a journey from Islamabad to Lahore via the GT road.

After hitting an intra-day low of 45,591.38 points, the index recovered remarkably by 500 points before falling slightly to close in the green zone.

At close, the benchmark KSE 100-share Index recorded a rise of 19.11 points or 0.04% to finish trading at 45,998.81.

According to Elixir Securities, Pakistan equities closed Wednesday little changed after recovering from morning declines, which had pulled benchmark KSE-100 Index lower near the 45,600 level intra-day.



“Market started on a weaker note and notable blue-chips across oils, financials and cements along with select Index names were dragged down by mid-day on selling amid dearth of serious buyers on screen,” stated Elixir.

Political noise remained a dampener as Sharif kicked off his defiant march, which will continue for more than two days, from capital Islamabad to his home town Lahore.

Although wider market activity was lower, as evident from under 215 million shares exchanging hands on the KSE All Index, volumes and turnover on benchmark KSE-100 Index jumped 21% and 77% respectively vs Tuesday’s as local institutions reportedly cherry-picked notable names in the second half of trading and aided in market recovery, stated the report.

Meanwhile, Maple Leaf Cements (MLCF PA -3.9%) traded lower and churned most volumes since early July on market chatter of possible right issue that dented sentiments.



“Despite Wednesday's pull back we expect market to remain under pressure and trade in a narrow range despite earnings related excitement as politics is expected to keep a check on any bounce back for remainder of this week,” the report added.

JS Global analyst Maaz Mulla said the bourse opened on a negative note amidst concerning political noises as the benchmark KSE-100 index made an intraday low of -338 points. However, value buying helped the index to recover later on to close 19 points higher at 45,999.

“The steel sector flourished as ASL (+4.73%), ISL (+4.97%), and INIL (+4.32%) closed near their upper circuits. KEL too edged up (+2.03%) on FY16 earnings announcement, as their earnings improved by 16% YoY to Rs1.19/share,” Mulla remarked.

EPQL (+4.25%) from the power sector also gained on account of above expectation earnings of Rs4.77/share for 1H2017 and DPS of Rs1.75/share.

Commercial banks' heavyweights contributed negatively to the KSE-100 index, led by HBL (-1.46%), UBL (-1.93%) and NBP (-0.21%). E&Ps also declined on lower oil prices with POL (-0.50%), PPL (-1.26%) and OGDC (-1.04%) losing ground.



“We recommend investors to remain cautious, and accumulate value stocks on dips,” Mulla added.

Overall, trading volumes rose to 213 million shares compared with Tuesday's tally of 205 million.

Shares of 386 companies were traded. At the end of the day, 243 stocks closed higher, 130 declined while 13 remained unchanged. The value of shares traded during the day was Rs13.7 billion.

Aisha Steel Mill was the volume leader with 19.7 million shares, gaining Rs1.04 to close at Rs23.04. It was followed by K-Electric with 14.7 million shares, gaining Rs0.14 to close at Rs7.05 and TRG Pakistan with 14.3 million shares, gaining Rs1.85 to close at Rs45.30.

Foreign institutional investors were net sellers of Rs2.105 billion during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.