Market watch: Buying interest leads to 300-point rise in KSE-100 Index

Despite foreign selling, benchmark index gains 0.71% to finish at 42,846.64


Our Correspondent May 31, 2018
Despite foreign selling, benchmark index gains 0.71% to finish at 42,846.64. PHOTO: AFP

KARACHI: Stocks once again turned bullish on Thursday as increased investors’ interest helped the KSE-100 Index advance 373 points in intra-day trading to finish the day on a positive note.

The index opened up, but it continued to trade directionless with minor fluctuations. By midday, it kept a steady upward momentum, hitting an intra-day high of 42,919.72 points.

Later, the index fell briefly before close, but it ended the day in the black. Trading activity was led by index-heavy stocks of banking, oil and auto sectors.

Positive sentiments in the market were partially aided by the extension in Prime Minister’s Export Package for the next three years coupled with the premier’s statement that elections would not be delayed.

At close, the benchmark KSE 100-share Index recorded an increase of 300.16 points or 0.71% to settle at 42,846.64.

JS Securities’ analyst Maaz Mulla said volatility prevailed in the market as the index remained range bound, trading between -50 and +373 points. It closed at 42,847, up 300 points.

Market watch: Stocks cave in to foreign selling pressure, end down

However, hefty buying was witnessed just before the close as investors took the opportunity to accumulate stocks at attractive levels.

He said the volume traded was slightly better than the previous day where Pak Elektron (+1.10%) was the volume leader with 14 million shares changing hands.

On the economic front, the Economic Coordination Committee approved the prime minister’s package of incentives for exporters of textile and non-textile products. Components of the export package were estimated to provide competitive benefits of around Rs65 billion annually, the analyst said.

Oil and Gas Development Company (OGDC, +1.79%), MCB Bank (+2.02%), Pakistan Oilfields Limited (POL, +1.82%) and Habib Bank (+1.02%) were major gainers of the day, cumulatively contributing +124 points to the index.

The banking sector led the gains as sector heavyweights MCB Bank (+2.02%), Bank Alfalah (+1.72%), Faysal Bank (+4.76%) and Habib Bank (+1.02%) closed in the green zone.

Investors’ interest was witnessed in the exploration and production sector as well despite crude oil prices edging lower in the international market. OGDC (+1.79%), POL (+1.82%) and Pak Petroleum (+1.22%) were major movers of the sector.

Market watch Foreigners turn buyers as KSE-100 rises 484 points

“Moving forward, we expect the market to remain range bound with flows from local and foreign institutions guiding direction,” the analyst added.

Overall, shares of 352 companies were traded. At the end of the day, 190 stocks closed higher, 139 declined while 23 remained unchanged.

Trading volumes increased to 142.6 million shares compared with Wednesday’s tally of 133.7 million. The value of shares traded during the day was Rs7.9 billion.

Pak Elektron was the volume leader with 13.9 million shares, gaining Rs0.42 to close at Rs38.50. It was followed by Pakistan International Bulk Terminal with 11.8 million shares, losing Rs0.50 to close at Rs13.06 and TRG Pakistan with 11.7 million shares, gaining Rs0.15 to close at Rs28.78.

Foreign institutional investors were net sellers of Rs915 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.

COMMENTS

Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ