Market watch: Relief rally at bourse on the back of institutional buying
Benchmark KSE-100 index gains 572.21 points to close at 41,779.20
PHOTO: FILE
KARACHI:
The doom and gloom surrounding the stock market seemed to have subsided after the long Eidul Azha holidays as the stock market gained 572.21 points on Tuesday amid increased activity.
Despite opening on a negative note with Habib Bank (HBL) acting as a major dampener, attractive valuations and relative political stability triggered a buying spree which generated and sustained gains in notable index names for the rest of the day.
At close, the benchmark KSE 100-share Index recorded an increase of 572.21 points or 1.39% at 41,779.20 points.
Elixir Securities, in its report, stated Pakistan equities surged on the first day after long Eid holidays on the back of strong institutional buying with the benchmark index settling 1.4% higher near 41,800 points.
“The market opened on a negative note as index-heavy Habib Bank (-5%) continued to dent the index in early trade with a fifth consecutive lower lock,” the report said.
Market watch: Record low trading pulls KSE-100 back in red zone
Later, relative calm on the domestic political front and attractive valuations generated buying interest in the wider market that helped it to recover and sustain gains by the end of the day.
Oil stocks led the gains as Oil and Gas Development Company (OGDC, +4.7%) contributed most points to the index due to reportedly heavy local buying with notable index names across cement, steel, auto and select sideboards also trading higher and aiding the rebound.
“Despite settling higher, the wider market witnessed an overall depressed activity with just fewer than 110 million shares exchanging hands on the KSE All-share Index,” stated Elixir.
“(We) expect the relief rally to continue, however, improvement in volumes will remain vital as the benchmark index attempts to climb out of the correction territory above 42,000.”
JS Global analyst Maaz Mulla said a bullish momentum prevailed in Tuesday’s trading session as the market gained to hit an intra-day high of 627 points and low of 136 points, closing positive.
KSE-100 endures worst month in seven years
“Crude oil edged a little higher in the international market as the US Gulf Coast refineries came online after the hurricane. Therefore, the exploration and production sector closed in the green zone as OGDC (+4.66%), Pakistan Oilfields (+0.32%) and Pakistan Petroleum (+1.22%) were major gainers in the sector,” said Mulla.
Moreover, Hubco (+1.09%) and Kot Addu Power Company (+0.22%) closed in the green in anticipation of rupee depreciation vis-a-vis the greenback.
Furthermore, Sui Northern Gas Pipelines (+4.85%) closed near the upper circuit as the Petroleum Division looked all set to implement new reforms that drove the overall oil marketing sector upwards.
Commercial banks showed a slight rally where MCB Bank (+1.42%) and United Bank (+2.68%) closed positive. HBL (-5%) again closed limit down due to the news of a $630 million fine on its New York branch.
“Going ahead, we expect the market to post further gains and recommend investors to invest in value stocks,” he added.
Overall, trading volumes rose to 107 million shares compared with Thursday’s tally of 70 million.
Shares of 371 companies were traded. At the end of the day, 272 stocks closed higher, 83 declined while 16 remained unchanged. The value of shares traded during the day was Rs6.5 billion.
TRG Pakistan was the volume leader with 9.49 million shares, gaining Rs1.76 to close at Rs37.14. It was followed by Aisha Steel Mills with 8.13 million shares, gaining Rs0.97 to close at Rs19.98 and Sui Southern Gas Company with 6.37 million shares, gaining Rs0.89 to close at Rs39.15.
Foreign institutional investors were net buyers of Rs665 million during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.
The doom and gloom surrounding the stock market seemed to have subsided after the long Eidul Azha holidays as the stock market gained 572.21 points on Tuesday amid increased activity.
Despite opening on a negative note with Habib Bank (HBL) acting as a major dampener, attractive valuations and relative political stability triggered a buying spree which generated and sustained gains in notable index names for the rest of the day.
At close, the benchmark KSE 100-share Index recorded an increase of 572.21 points or 1.39% at 41,779.20 points.
Elixir Securities, in its report, stated Pakistan equities surged on the first day after long Eid holidays on the back of strong institutional buying with the benchmark index settling 1.4% higher near 41,800 points.
“The market opened on a negative note as index-heavy Habib Bank (-5%) continued to dent the index in early trade with a fifth consecutive lower lock,” the report said.
Market watch: Record low trading pulls KSE-100 back in red zone
Later, relative calm on the domestic political front and attractive valuations generated buying interest in the wider market that helped it to recover and sustain gains by the end of the day.
Oil stocks led the gains as Oil and Gas Development Company (OGDC, +4.7%) contributed most points to the index due to reportedly heavy local buying with notable index names across cement, steel, auto and select sideboards also trading higher and aiding the rebound.
“Despite settling higher, the wider market witnessed an overall depressed activity with just fewer than 110 million shares exchanging hands on the KSE All-share Index,” stated Elixir.
“(We) expect the relief rally to continue, however, improvement in volumes will remain vital as the benchmark index attempts to climb out of the correction territory above 42,000.”
JS Global analyst Maaz Mulla said a bullish momentum prevailed in Tuesday’s trading session as the market gained to hit an intra-day high of 627 points and low of 136 points, closing positive.
KSE-100 endures worst month in seven years
“Crude oil edged a little higher in the international market as the US Gulf Coast refineries came online after the hurricane. Therefore, the exploration and production sector closed in the green zone as OGDC (+4.66%), Pakistan Oilfields (+0.32%) and Pakistan Petroleum (+1.22%) were major gainers in the sector,” said Mulla.
Moreover, Hubco (+1.09%) and Kot Addu Power Company (+0.22%) closed in the green in anticipation of rupee depreciation vis-a-vis the greenback.
Furthermore, Sui Northern Gas Pipelines (+4.85%) closed near the upper circuit as the Petroleum Division looked all set to implement new reforms that drove the overall oil marketing sector upwards.
Commercial banks showed a slight rally where MCB Bank (+1.42%) and United Bank (+2.68%) closed positive. HBL (-5%) again closed limit down due to the news of a $630 million fine on its New York branch.
“Going ahead, we expect the market to post further gains and recommend investors to invest in value stocks,” he added.
Overall, trading volumes rose to 107 million shares compared with Thursday’s tally of 70 million.
Shares of 371 companies were traded. At the end of the day, 272 stocks closed higher, 83 declined while 16 remained unchanged. The value of shares traded during the day was Rs6.5 billion.
TRG Pakistan was the volume leader with 9.49 million shares, gaining Rs1.76 to close at Rs37.14. It was followed by Aisha Steel Mills with 8.13 million shares, gaining Rs0.97 to close at Rs19.98 and Sui Southern Gas Company with 6.37 million shares, gaining Rs0.89 to close at Rs39.15.
Foreign institutional investors were net buyers of Rs665 million during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.