Market watch: Banks take a hit, but KSE-100 ends positive for 4th successive session

Benchmark gains 181.13 points to close at 45,741.43

KARACHI: Banks may have taken a hit, but other index-heavy sectors attracted attention as the KSE-100's positive run continued on the opening day of the week.

Auto, cement, engineering and oil sectors led the rally even as banks remained in the red due to status quo in the interest rate, helping the KSE-100 close above the 45,700 mark.

At close, the benchmark KSE 100-share Index recorded an increase of 181.13 points or 0.40% to settle at 45,741.43.

Elixir securities' analyst Muhammad Arbash said equities closed higher with the benchmark KSE-100 index settling above 45,700 level.



"In the Monetary Policy announcement late Friday evening, the State Bank of Pakistan kept the policy rate unchanged at 6% - a decision that came as a surprise to many, and consequently, financials came under heavy selling pressure, denting the KSE-100 Index by a good 250 points," remarked the analyst.

"Nonetheless, other sectors including cements (4.8%), autos (2.9%), steels (3.9%) that stand to benefit from low interest rates witnessed strong buying from investors that in turn helped counter negativity.

"CPI Inflation reading for March 2018 stood at 3.25% YoY, and came just a little higher than consensus and did not surprise. Meanwhile, Pakistan State Oil (PSO PA +2.5%) closed higher as govt released Rs53 billion to clear energy sector debt.



"[We] see positive momentum to continue in the near-term with news flow on budget and amnesty scheme keeping investors' interest intact in the market," Arbash added.

Overall, trading volumes increased to 262 million shares compared with Friday's tally of 230 million.

Shares of 374 companies were traded. At the end of the day, 208 stocks closed higher, 146 declined while 20 remained unchanged. The value of shares traded during the day was Rs12.2 billion.

Fauji Cement was the volume leader with 21.4 million shares, gaining Rs1.41 to close at Rs30.66. It was followed by TRG Pakistan with 17.1 million shares, losing Rs0.71 to close at Rs36.65 and Engro Polymer with 16.8 million shares, gaining Rs0.99 to close at Rs36.64.

Foreign institutional investors were net sellers of Rs220.9 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.