Market watch: Foreign buying continues to propel KSE-100 forward

Benchmark index crosses 43,000-point barrier, gains 411.85 points

KARACHI: The stock market maintained its positive momentum on Tuesday, gaining a total of over 1,500 points in the past one week.

Increased activity, stimulated by growing foreign investor interest, and favourable comments about trade concessions for Pakistani textiles by the British government played a key part in helping the benchmark index close in the green zone.

At close, the benchmark KSE 100-share Index recorded a rise of 411.85 points or 0.96% to stand at 43,253.26.

Elixir Securities, in its report, stated that Pakistan equities closed higher with the benchmark index surging over 400 points due to improved activity.

“The market took cue from higher regional markets and had a good run in the morning with index testing resistance at 43,200,” the report said.

Fertiliser stocks carried the momentum and led gains on the back of buying interest both from foreign and local investors while textile shares also attracted investments due to morning news of the UK supporting continuity of the GSP Plus status for Pakistan.



As the day progressed, the wider market witnessed profit-taking, however, buying in index names in the final 90 minutes of trading put the benchmark index back on positive trajectory.

Meanwhile, DG Khan Cement (+0.5%) recovered from intra-day losses to close in the green as investors cheered the higher cash dividend declared by the company, even though earnings were slightly lower than consensus.

“We expect the market to carry its momentum and inch upwards with help from institutional flows. However, a sustained progress above 43,500 is imperative for the index to terminate the recent bearish structure,” the report added.

JS Global analyst Maaz Mulla said bullish sentiments prevailed in the market, pushing the KSE-100 index up by 412 points to 43,253.

“Volumes also improved 92% as 219 million shares were traded throughout the session. Dost Steels (+5%) led the volumes with 27 million shares exchanging hands," he said.

The oil and gas exploration and production sector moved higher as crude oil prices rose back to their five-month high in the world market. Pakistan Petroleum (+0.58%) and Oil and Gas Development Company (+0.16%) were major gainers in the sector.



Fertiliser stocks recorded strong buying and they contributed 118 points to the KSE-100 index with Fauji Fertiliser Company (+5%), Fatima Fertiliser (+2.84%) and Engro Fertilisers (+2.79%) being the key performers.

“DG Khan Cement (+0.47%) gained as it announced financial results for FY17 with earnings per share of Rs18.20 and dividend per share of Rs7.5. Attock Refinery (+3.65%) showed bullish sentiments in the last few minutes and closed near its upper circuit.

“We recommend investors to do selective buying in fundamentally solid stocks,” he added.

Overall, trading volumes rose to 218 million shares compared with Monday’s tally of 113 million.

Shares of 391 companies were traded. At the end of the day, 271 stocks closed higher, 108 declined while 12 remained unchanged. The value of shares traded during the day was Rs11.2 billion.

Dost Steels was the volume leader with 27.28 million shares, gaining Rs0.63 to close at Rs13.22. It was followed by WorldCall Telecom with 16.4 million shares, gaining Rs0.49 to close at Rs3.75 and TRG Pakistan with 15.4 million shares, gaining Rs1.09 to close at Rs40.76.

Foreign institutional investors were net buyers of Rs202 million during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.