Market watch: KSE-100 gains 295 points, finishes over 39,000

Reports of rupee losing value served as positive trigger for some sectors

KARACHI: In another dramatic turn, stocks recovered from the previous session's massacre and powered past the 39,000-point barrier to finish the last trading day of the week on a positive note.

The KSE-100 Index shot up 550 points as news of the Pakistani rupee declining 4% in intra-day movement led the index forward. Despite thin volumes, the positive run was a welcome respite from the three-day losing streak. Later, the index declined briefly but closed in the green.

At the end of trading on Friday, the benchmark KSE 100-share Index registered an increase of 295.34 points or 0.76% to settle at 39,080.

JS Global analyst Maaz Mulla said that after three consecutive negative sessions, the KSE-100 Index closed its day on a positive note at 39,080 points level, reporting a gain of 295 points.

"Weak bullish momentum was witnessed on news of depreciating PKR against the greenback in the inter-bank market. PKR/USD parity shot up to Rs109-110 levels from Thursday's closing of Rs105," Mulla remarked.



Depreciation of the currency was seen as a positive sign for the equity market, as over 25% of market capitalisation directly benefits from depreciation where E&Ps, IPPs, textiles and IT-related companies stood out as major beneficiaries, said the analyst.

The State Bank of Pakistan took notice regarding depreciating rupee and after the intervention dollar price came down again to settle at around Rs105.80.

Following this, most gains witnessed earlier in the day reversed towards the end of the session. Major leaders at the bourse were MTL (+1.5%), POL (+2.5%), PPL (+2.6%) and ENGRO (+2.4%) whereas major laggards were INDU (-2.9%), NRL (-3.0%), PSMC (-1.5%) and PKGS (-1.3%).

In the E&Ps sector, POL (+2.5%) and PPL (+2.6%) and OGDC (+1.3%) rallied as the crude prices remained stable amidst recent decision by OPEC to keep supply cuts intact and signs of PKR devaluation in the open market.

Rally was witnessed in the banking sector as well, as the value buyers showed jubilance after witnessing significant battering in the past few weeks. UBL (+3.0%) HBL (+2.3%) and MCB (+1.8%) were the major leaders of the aforementioned sector.



"Moving forward, we recommend investors to stay cautious at current levels, where any upside movement could be considered an opportunity to reduce short-term positions or book profits."

Overall, trading volumes fell to 149 million shares compared with Thursday's tally of 163 million.

Shares of 364 companies were traded. At the end of the day, 160 stocks closed higher, 185 declined while 19 remained unchanged. The value of shares traded during the day was Rs7.3 billion.

WorldCall Telecom was the volume leader with 16.5 million shares, gaining Rs0.13 to close at Rs3.13. It was followed by TRG Pakistan with 10.7 million shares, losing Rs1.70 to close at Rs33.83 and Sui South Gas with 10.6 million shares, losing Rs1.47 to close at Rs29.42.

Foreign institutional investors were net sellers of Rs183 million during the trading session, according to data compiled by the National Clearing Company of Pakistan.