Market watch: KSE-100 snaps three-day losing streak, ends in the green
Benchmark index rises 287.51 points to close at 44,186.96
Benchmark index rises 287.51 points to close at 44,186.96. PHOTO: FILE
KARACHI:
In a volatile session on Wednesday, the stock market broke its three-day losing streak and managed to close positive, settling above 44,000 points.
The KSE-100 index shot up 350 points in the first hour of trading. As the political situation continued to guide market direction, the index slipped to hit an intra-day low of 43,781.57 points.
Later, it staged a remarkable recovery and climbed 420 points. Before the end of trading, it fell slightly, but remained in the green zone.
At close, the benchmark KSE 100-share Index recorded an increase of 287.51 points or 0.65% at 44,186.96.
Stocks receive a hammering as political tensions boil over
Elixir Securities, in its report, stated Pakistan equities bounced back to close in the green after three consecutive negative sessions that pulled the benchmark index down by nearly 4.6%.
“The wider market covered some of the recent losses as select index names inched up on institutions-led cherry-picking while politics continued to be a distraction and kept most investors at bay,” stated Elixir.
Maple Leaf Cement (+0.9%) took a battering in early trade, but it recouped losses on reported buying by foreigners at lows while Engro Foods (-5%) hit the third consecutive lower price limit after announcing disappointing earnings late last week.
“Ultimately, flows will guide direction in the days ahead, however, value buyers in our view will attempt to take advantage of the ongoing weakness despite political noise capping the upside,” the report added.
KSE-100 falls 3.4% with marked decline in volumes
JS Global analyst Maaz Mulla said after Tuesday’s bloodbath, the market registered a recovery of 287 points amid thin volumes of 187 million shares.
“Continuity of political uncertainty has resulted in investors switching from growth stocks to value plays,” said Mulla.
Despite an increase in the overall oil marketing sector’s prices, Shell closed flat as its earnings of Rs21.85 per share for 1H2017 and dividend per share of Rs7 were not in line with investor expectations.
Commercial bank heavyweights MCB Bank (+0.96%), Habib Bank (+0.81%), United Bank (+0.18%) and National Bank (+1.45%) closed in the green and cumulatively contributed 53 points to the benchmark KSE-100 index.
The Bank of Punjab (+0.76%) also posted financial results for 1H2017 and recorded earnings per share of Rs1.4.
Aisha Steel Mills (+1.90%), International Steels (+4.13%) and International Industries (+4.98%) from the steel sector gained as investors picked stocks at attractive values.
“Moving forward, we recommend investors to view any upside as an opportunity to sell,” Mulla added.
Overall, trading volumes fell to 187 million shares compared with Tuesday’s tally of 191 million.
Shares of 377 companies were traded. At the end of the day, 217 stocks closed higher, 145 declined while 15 remained unchanged. The value of shares traded during the day was Rs10.3 billion.
Azgard Nine was the volume leader with 17.7 million shares, gaining Rs0.28 to close at Rs15.87. It was followed by Aisha Steel Mills with 11.6 million shares, gaining Rs0.41 to close at Rs22.01 and TRG Pakistan with 8.5 million shares, gaining Rs0.90 to close at Rs43.53.
Foreign institutional investors were net sellers of Rs396 million during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.
In a volatile session on Wednesday, the stock market broke its three-day losing streak and managed to close positive, settling above 44,000 points.
The KSE-100 index shot up 350 points in the first hour of trading. As the political situation continued to guide market direction, the index slipped to hit an intra-day low of 43,781.57 points.
Later, it staged a remarkable recovery and climbed 420 points. Before the end of trading, it fell slightly, but remained in the green zone.
At close, the benchmark KSE 100-share Index recorded an increase of 287.51 points or 0.65% at 44,186.96.
Stocks receive a hammering as political tensions boil over
Elixir Securities, in its report, stated Pakistan equities bounced back to close in the green after three consecutive negative sessions that pulled the benchmark index down by nearly 4.6%.
“The wider market covered some of the recent losses as select index names inched up on institutions-led cherry-picking while politics continued to be a distraction and kept most investors at bay,” stated Elixir.
Maple Leaf Cement (+0.9%) took a battering in early trade, but it recouped losses on reported buying by foreigners at lows while Engro Foods (-5%) hit the third consecutive lower price limit after announcing disappointing earnings late last week.
“Ultimately, flows will guide direction in the days ahead, however, value buyers in our view will attempt to take advantage of the ongoing weakness despite political noise capping the upside,” the report added.
KSE-100 falls 3.4% with marked decline in volumes
JS Global analyst Maaz Mulla said after Tuesday’s bloodbath, the market registered a recovery of 287 points amid thin volumes of 187 million shares.
“Continuity of political uncertainty has resulted in investors switching from growth stocks to value plays,” said Mulla.
Despite an increase in the overall oil marketing sector’s prices, Shell closed flat as its earnings of Rs21.85 per share for 1H2017 and dividend per share of Rs7 were not in line with investor expectations.
Commercial bank heavyweights MCB Bank (+0.96%), Habib Bank (+0.81%), United Bank (+0.18%) and National Bank (+1.45%) closed in the green and cumulatively contributed 53 points to the benchmark KSE-100 index.
The Bank of Punjab (+0.76%) also posted financial results for 1H2017 and recorded earnings per share of Rs1.4.
Aisha Steel Mills (+1.90%), International Steels (+4.13%) and International Industries (+4.98%) from the steel sector gained as investors picked stocks at attractive values.
“Moving forward, we recommend investors to view any upside as an opportunity to sell,” Mulla added.
Overall, trading volumes fell to 187 million shares compared with Tuesday’s tally of 191 million.
Shares of 377 companies were traded. At the end of the day, 217 stocks closed higher, 145 declined while 15 remained unchanged. The value of shares traded during the day was Rs10.3 billion.
Azgard Nine was the volume leader with 17.7 million shares, gaining Rs0.28 to close at Rs15.87. It was followed by Aisha Steel Mills with 11.6 million shares, gaining Rs0.41 to close at Rs22.01 and TRG Pakistan with 8.5 million shares, gaining Rs0.90 to close at Rs43.53.
Foreign institutional investors were net sellers of Rs396 million during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.