PHOTO:FILE
KARACHI: The stock market benefitted from multiple encouraging political developments on Wednesday as the benchmark index gained around 300 points on the back of positive investor sentiments and selective foreign buying.
The passage of the delimitation bill put worries of delayed elections at rest while the army chief’s endorsement of the democratic process also encouraged investor activity, with both institutional and retail investors providing vital support.
At the end of trading, the benchmark KSE 100-share Index registered an increase of 288.64 points or 0.76% to settle at 38,208.06.
According to Elixir Securities' analyst Murtaza Jafar, Pakistan equities stood positive with the benchmark KSE-100 Index finishing above 38,200 points, up 0.8%.
The market opened gap up as investors cheered successful passage of the delimitation bill that put worries over the holding of timely elections to rest.
Moreover, an unprecedented briefing by the army’s top brass in the Senate over national security matters along with their endorsement of continuity of the democratic process further boosted sentiments.
Market watch: KSE-100 falls another 465 points
Financial stocks led the gains with index-heavy Habib Bank (+5%) and United Bank (+4.6%) contributing the most to the day’s gains on reported foreign buying.
On the flip side, DG Khan Cement (-4%) dented the index as it remained on the sellers’ radar and traded at its lowest level since May 2015.
“We see the KSE-100 Index consolidate between 38,000 and 39,000 in the remaining days of this month while institutional flows primarily from foreigners post-holiday season will be crucial for the upside,” Elixir said.
JS Global analyst Maaz Mulla said the KSE-100 Index remained positive for almost the entire trading session and it closed at 38,208 (+289 points).
Traded volumes picked up by 19% to 130 million shares while traded value rose to $45 million. Top stocks in terms of volumes were TRG Pakistan (-3.62%), The Bank of Punjab (+4.97%), WorldCall Telecom (-2.76%) and K-Electric (+0.99%).
Investor sentiments dampened in the cement sector on expectations of a slowdown in monthly sales due to the seasonal factor. DG Khan Cement (-4.03%), Fauji Cement (-1.55%) and Lucky Cement (-0.91%) were major laggards of the sector.
Market watch: KSE-100 falls with trading volumes lowest since July 2014
Active participation was seen from locals and institutions in the banking sector where Habib Bank (+4.96%), United Bank (+4.57%) and MCB Bank (+2.65%) closed in the green.
Moreover, among refineries, which were facing an operational crisis, Attock Refinery (-2.72%) and National Refinery (-0.69%) fell.
“Moving forward, in the absence of positive triggers and lack of clarity in the political landscape, we advise investors to book profits on the higher side,” he added.
Overall, trading volumes increased to 129 million shares compared with Tuesday’s tally of 108 million.
Shares of 345 companies were traded. At the end of the day, 131 stocks closed higher, 187 declined while 27 remained unchanged. The value of shares traded during the day was Rs4.9 billion.
TRG Pakistan was the volume leader with 21.2 million shares, losing Rs1 to close at Rs26.60. It was followed by The Bank of Punjab with 11.7 million shares, gaining Rs0.37 to close at Rs7.81 and WorldCall Telecom with 9.18 million shares, losing Rs0.08 to close at Rs2.82.
Foreign institutional investors were net sellers of Rs258 million during the trading session, according to data compiled by the National Clearing Company of Pakistan.
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