Market watch: With euphoria continuing, KSE-100 gains another 336 points

Benchmark index increases 0.76% to close at 44,645.95

KARACHI: The euphoria from the preceding trading session continued on Wednesday as well as the benchmark stock index surged past 44,800 in intra-day trading and closed the third successive session in the green.

The KSE-100 Index shot up from the moment trading began in the morning with buying interest propelling the benchmark index. Trading activity was primarily focused on fertiliser and banking stocks.

Possibility of an interest rate hike due to increasing inflationary pressures following sharp depreciation of the rupee led most of the banking stocks to a positive close.

At the end of trading, the benchmark KSE 100-share Index recorded an increase of 336.21 points or 0.76% to settle at 44,645.95.

Elixir Securities' analyst Ali Raza said Pakistan equities raced ahead on newfound momentum post-rupee depreciation with the KSE-100 Index standing above 44,600 points at close.



"Market activity was lower compared to Tuesday with both volumes and value on the KSE All-share Index dropping 6% and 17% respectively," he said.

Among key sectors, financial stocks (+2.1%) topped the leaders' board as index heavyweight Habib Bank (+3.4%) contributed almost one-third points to the KSE-100 Index on institutional interest.

Fertiliser stocks (+1.1%) were positive over news pertaining to announcement of a new fertiliser policy soon that was expected to benefit both farmers and manufacturers.

Exploration and production (E&P) stocks (+0.4%) were also in the limelight following sharp overnight gains in global crude markets.

On the flip side, cement shares (-0.4%), steel companies (-0.7%) and auto producers (-0.7%) came under pressure due to expected increase in their production costs.



"With Thursday being the last working day of the week (Friday being holiday on account of Pakistan Day), (we) expect volatile and flows-driven market with financial and E&P stocks likely seeing profit-taking at highs," Raza added.

Overall, trading volumes decreased to 207 million shares compared with Tuesday's tally of 220 million.

Shares of 389 companies were traded. At the end of the day, 190 stocks closed higher, 179 declined while 20 remained unchanged. The value of shares traded during the day was Rs9.1 billion.

Lotte Chemical was the volume leader with 16.5 million shares, gaining Rs0.28 to close at Rs10.37. It was followed by TRG Pakistan with 14.8 million shares, gaining Rs1.51 to close at Rs38.32 and Sui Southern Gas Company with 13.4 million shares, gaining Rs1.34 to close at Rs38.13.

Foreign institutional investors were net sellers of Rs96.9 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.