KARACHI: The KSE-100 Index underwent a see-saw ride before ending in the positive on Tuesday, briefly crossing the 40,000-point barrier as sector-specific news gave investors reason to cheer about.
A 5.3% devaluation in the rupee meant sentiments were hit at the start of the week, with volatility continuing to persist. However, reports that the cement sector raised prices in the country gave the market some impetus.
Fertiliser companies also announced an increase in the price of urea, reviving a wave of bullish trend in the sector.
At close, the KSE-100 finished with an increase of 267.21 points or 0.67% to settle at 39,932.98.
Elixir Securities’ analyst Zainul Abedin said the KSE-100 was off to a negative start and maintained a choppy behavior until mid-day.
“Initial declines were led by oil stocks, which continued to track the fall in global oil prices,” said Abedin. “Volumes remained subdued in the first half, however, positive news flow in fertiliser and cement changed the afternoon sentiments and helped to cover back the early declines.
“News of increase in urea prices (Rs50/bag) attracted buyers in Engro Fertilizers (+3.1%), while increase in cement prices (Rs10/bag) turned the fortunes of the recent laggard cements. Key stocks, DG Khan Cement, Maple Leaf Cement and Fauji Cement, all gained over 4%, while Lucky Cement (+3.2%) contributed the second most positive points on the benchmark index.
“With support developing around 39,500-39,200 levels, we see further continuation towards 40,600-40,800 levels in the days ahead,” the analyst added.
Overall, trading volumes decreased to 141.97 million shares compared with Monday’s tally of 147.48 million. The value of shares traded during the day was Rs6.02 billion.
Shares of 340 companies were traded. At the end of the day, 229 stocks closed higher, 91 declined while 20 remained unchanged.
Fauji Cement was the volume leader with 17.7 million shares, gaining Rs0.80 to close at Rs20.04. It was followed by TRG Pakistan with 8.5 million shares, gaining Rs1.12 to close at Rs27.1 and Pakistan International Bulk Terminal (R) with 7.12 million shares, losing Rs0.14 to close at Rs0.50.
Foreign institutional investors were net sellers of Rs198.1 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.