Market watch: KSE-100 gains another 770 points as rally continues

Benchmark index increases 1.80% to settle at 43,556.63


Our Correspondent July 30, 2018
Benchmark index increases 1.80% to settle at 43,556.63. PHOTO: AFP

KARACHI: The KSE-100 Index maintained its bullish run, ending 770 points higher on Monday as developments on the currency front and anticipation of earnings announcement led the rally.

Stocks have been inching higher since Tuesday last week with investors expecting a favourable outcome in the general elections. As results emerged and Pakistan Tehreek-e-Insaf (PTI) gained an upper hand, investors concentrated on market fundamentals to buy at attractive valuations. Reports of China agreeing to lend Pakistan $2 billion and the Islamic Development Bank activating its $4.5-billion credit facility for oil imports gave a further boost.

On Monday, the KSE-100 opened positive and continued to gain ground throughout the day to surpass the 43,500 level, cumulatively adding 7.64% in the four-session winning streak.

At close on Monday, the benchmark KSE 100-share Index recorded an increase of 770.18 points or 1.80% to settle at 43,556.63.

Weekly review: Bulls lead the way as KSE-100 gains 1,565 points

Elixir Securities' analyst Murtaza Jafar said equities carried their winning streak into the new week.

"The market opened positive as sentiments were boosted after recovery in the Pakistani rupee in inter-bank market," said Jafar.

"Stocks trended upwards and sustained gains throughout the day with cements (+4.9%), steels (+4.7%), OMCs (+2.5%) and select financials (+0.9%) leading the gains. DG Khan Cement (DGKC PA +5%) closed at its upper circuit after announcing the start of commercials operations of its recently commissioned cement plant in Hub. On results front, Honda Atlas Car (HCAR PA +0.84%) announced its first quarter result.

"[We expect] institutional flows to drive momentum in the coming days while the ongoing earnings season to keep investors interest intact in the wider market," he added.

Market watch: Stocks extend winning run, KSE-100 adds another 697 points

Overall, trading volumes decreased to 377.9 million shares compared with Friday's tally of 385.5 million. The value of shares traded during the day was Rs15 billion.

Shares of 400 companies were traded. At the end of the day, 296 stocks closed higher, 91 declined while 13 remained unchanged.

WorldCall Telecom was the volume leader with 35.1 million shares, gaining Rs0.15 to close at Rs2.11. It was followed by Pak International Bulk Terminal with 19.6 million shares, gaining Rs0.98 to close at Rs13.06 and PIAC (A) with 18.9 million shares, gaining Rs0.08 to close at Rs7.07.

Foreign institutional investors were net sellers of Rs365.6 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.

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