Market watch: Led by local investors, KSE-100 surges over 600 points

Benchmark index crosses 40,000 barrier with 1.57% increase

KARACHI: Stock prices surged on Wednesday that sent the benchmark KSE-100 Index higher by over 600 points in the fifth consecutive session in the green - a rare occurrence for the sliding market over the past few months.

Positive investor sentiments helped the market gain lost ground as lack of negative news provided support. The KSE-100 shot up soon after the trading began and crossed the 40,000 barrier.

At the end of trading, the benchmark KSE 100-share Index registered an increase of 620.98 points or 1.57% to settle at 40,146.73.

According to Elixir Securities' analyst Ali Raza, Pakistan equities notched up healthy gains as the benchmark index soared past 40,100 points, up 1.6% or 621 points, driven by buying from local investors.

“Trading activity on the KSE-100 Index recorded a notable surge as over 107 million shares changed hands, up 55% from the current month’s average,” Raza said.

The market opened on a positive note with index-heavy oil stocks providing early support because investors tracked the global crude that traded at over two-year high on supply concerns post-pipeline explosion in Libya.



“Thereafter, flows primarily from local institutional investors in index names helped keep the momentum going with a number of blue chips rallying and supporting the index’s ride,” the analyst added.

Lucky Cement (+5%), Pakistan Petroleum (+3%), Oil and Gas Development Company (+2.4%), United Bank (+1.7%) and DG Khan Cement (+5%) were among star performers.

Positives on the political front also helped the wider market sentiment as over a month after the departure of former finance minister Ishaq Dar, Miftah Ismail, a very capable businessman, took charge as adviser to the PM on finance, revenue and economic affairs.

“[We] expect the current momentum to continue as we eye further gains on possible end-of-year window dressing,” Raza said.

JS Global analyst Maaz Mulla said the KSE-100 Index remained positive throughout the day, hitting an intra-day high of 635 points to close at 40,147 (+621 points).

K-Electric closed in the red on the back of news that the Ministry of Energy (Power Division) had reportedly withdrawn its special support to the company for an upward revision in its Multi-Year Tariff.

“Investors’ interest persisted in the cement sector as a handful of stocks continued to hit or close near their respective upper circuits namely Kohat Cement (+5%), DG Khan Cement (+5%), Pioneer Cement (+5%) and Lucky Cement (+4.97%),” Mulla said.



From the exploration and production sector, Pakistan Oilfields (+1.06%), Pakistan Petroleum (+3.01%) and Oil and Gas Development Company (+2.41%) closed in the green on the back of escalating international crude oil prices.

“Moving forward, we recommend investors to avail themselves of opportunities in cement, steel and oil sectors,” he added.

Overall, trading volumes increased to 199 million shares compared with Tuesday’s tally of 178 million.

Shares of 372 companies were traded. At the end of the day, 239 stocks closed higher, 115 declined while 18 remained unchanged. The value of shares traded during the day was Rs9.3 billion.

TRG Pakistan was the volume leader with 17.4 million shares, gaining Rs1.07 to close at Rs30.82. It was followed by WorldCall Telecom with 14.2 million shares, gaining Rs0.15 to close at Rs2.97 and K-Electric with 13.3 million shares, losing Rs0.06 to close at Rs6.27.

Foreign institutional investors were net sellers of Rs152.8 million during the trading session, according to data compiled by the National Clearing Company of Pakistan.