Market watch: KSE-100 records thin increase in directionless trading
Benchmark index rises 54.86 points to end at 39,525.75
PHOTO: AFP
KARACHI:
The stock market opened positive on Tuesday after an extended weekend as the KSE-100 Index advanced slightly to close in the green zone.
Stability on the political front encouraged investors to return to the market. The index recorded directionless trading in the early part of the day, but later it touched an intra-day high of almost 250 points. Afterwards, the index dipped, but still finished the day positive.
At the end of trading, the benchmark KSE 100-share Index registered an increase of 54.86 points or 0.14% to settle at 39,525.75.
According to Elixir Securities' analyst Ali Raza, Pakistan equities closed little changed after a long weekend with the benchmark index remaining steady above 39,500 points.
"The trading day started on a dull note, however, as the day progressed a handful of blue-chip names across key sectors recorded better activity on reported interest of locals," Raza said.
Brokers blame over-regulation, inept board officials for market crisis
Cement stocks carried the previous week's momentum and traded in the green with Fauji Cement (+5%) leading the gains and contributing most points to the KSE-100 Index.
Interestingly, the steel sector was also in the limelight as investors took comfort from news flow that the recently announced regulatory duty on the import of hot-rolled coil was yet to be approved. An increase in cold-rolled coil prices by the flat steel manufacturers to pass on the impact of rupee depreciation also supported the stocks.
International Industries (+2.4%) and International Steels (+1.8%) also garnered interest as the PSX announced their addition to the KMI-30 Index.
"With year-end around the corner, we expect selective window dressing by domestic institutions over the coming trading sessions," Raza added.
JS Global analyst Maaz Mulla said the KSE-100 Index remained volatile throughout the day as it hit a high of 248 points and a low of 177 points to close at 39,526 (+55 points).
The volatility could be attributed to the first day of futures rollover week. However, active participation was witnessed in all major stocks, Mulla observed.
Stock market recovers after five weeks of constant battering
The cement sector once again came under the limelight where DG Khan Cement (+1.81%), Lucky Cement (+0.29%), Cherat Cement (+5%), Kohat Cement (+3.55%) and Fauji Cement (+4.96%), amongst other cement stocks, closed positive.
Investors' interest was witnessed in the steel sector as Amreli Steels (+4.91%), Mughal Iron and Steel (+5%) and International Steels (+1.84%) went up on the back of expectations of an increase in cold-rolled coil prices by about Rs2,500 per ton.
A revision in the regulatory duty on different products played well for the chemical sector where Engro Polymer and Chemicals (+2.56%) and Lotte Chemical (+9.35%) made gains.
"We expect current volatility to result in continued profit-taking in the upcoming trading sessions. We recommend investors to book profits on the higher side," the analyst added.
Overall, trading volumes decreased to 178 million shares compared with Friday's tally of 223 million.
Shares of 344 companies were traded. At the end of the day, 186 stocks closed higher, 144 declined while 14 remained unchanged. The value of shares traded during the day was Rs7.2 billion.
Lotte Chemical was the volume leader with 17.4 million shares, gaining Rs0.63 to close at Rs7.37. It was followed by TRG Pakistan with 14.9 million shares, gaining Rs0.58 to close at Rs29.75 and Fauji Cement with 14.6 million shares, gaining Rs1.12 to close at Rs23.68.
Foreign institutional investors were net buyers of Rs124 million during the trading session, according to data compiled by the National Clearing Company of Pakistan.
The stock market opened positive on Tuesday after an extended weekend as the KSE-100 Index advanced slightly to close in the green zone.
Stability on the political front encouraged investors to return to the market. The index recorded directionless trading in the early part of the day, but later it touched an intra-day high of almost 250 points. Afterwards, the index dipped, but still finished the day positive.
At the end of trading, the benchmark KSE 100-share Index registered an increase of 54.86 points or 0.14% to settle at 39,525.75.
According to Elixir Securities' analyst Ali Raza, Pakistan equities closed little changed after a long weekend with the benchmark index remaining steady above 39,500 points.
"The trading day started on a dull note, however, as the day progressed a handful of blue-chip names across key sectors recorded better activity on reported interest of locals," Raza said.
Brokers blame over-regulation, inept board officials for market crisis
Cement stocks carried the previous week's momentum and traded in the green with Fauji Cement (+5%) leading the gains and contributing most points to the KSE-100 Index.
Interestingly, the steel sector was also in the limelight as investors took comfort from news flow that the recently announced regulatory duty on the import of hot-rolled coil was yet to be approved. An increase in cold-rolled coil prices by the flat steel manufacturers to pass on the impact of rupee depreciation also supported the stocks.
International Industries (+2.4%) and International Steels (+1.8%) also garnered interest as the PSX announced their addition to the KMI-30 Index.
"With year-end around the corner, we expect selective window dressing by domestic institutions over the coming trading sessions," Raza added.
JS Global analyst Maaz Mulla said the KSE-100 Index remained volatile throughout the day as it hit a high of 248 points and a low of 177 points to close at 39,526 (+55 points).
The volatility could be attributed to the first day of futures rollover week. However, active participation was witnessed in all major stocks, Mulla observed.
Stock market recovers after five weeks of constant battering
The cement sector once again came under the limelight where DG Khan Cement (+1.81%), Lucky Cement (+0.29%), Cherat Cement (+5%), Kohat Cement (+3.55%) and Fauji Cement (+4.96%), amongst other cement stocks, closed positive.
Investors' interest was witnessed in the steel sector as Amreli Steels (+4.91%), Mughal Iron and Steel (+5%) and International Steels (+1.84%) went up on the back of expectations of an increase in cold-rolled coil prices by about Rs2,500 per ton.
A revision in the regulatory duty on different products played well for the chemical sector where Engro Polymer and Chemicals (+2.56%) and Lotte Chemical (+9.35%) made gains.
"We expect current volatility to result in continued profit-taking in the upcoming trading sessions. We recommend investors to book profits on the higher side," the analyst added.
Overall, trading volumes decreased to 178 million shares compared with Friday's tally of 223 million.
Shares of 344 companies were traded. At the end of the day, 186 stocks closed higher, 144 declined while 14 remained unchanged. The value of shares traded during the day was Rs7.2 billion.
Lotte Chemical was the volume leader with 17.4 million shares, gaining Rs0.63 to close at Rs7.37. It was followed by TRG Pakistan with 14.9 million shares, gaining Rs0.58 to close at Rs29.75 and Fauji Cement with 14.6 million shares, gaining Rs1.12 to close at Rs23.68.
Foreign institutional investors were net buyers of Rs124 million during the trading session, according to data compiled by the National Clearing Company of Pakistan.