Market watch: Buying momentum leads to 335-point gain in KSE-100

Benchmark index increases 0.89% to settle at 37,982.25

KARACHI: Bullish sentiment prevailed at the stock market on Thursday as the KSE-100 index gained on the back of attractive valuations and better-than-expected corporate results.

Although the KSE-100 continued to march upwards during the day, it lacked the enthusiasm of the preceding session, when the index surged nearly 1,000 points. Investors were slightly confused as Prime Minister Imran Khan hinted that Pakistan may not have to return to the International Monetary Fund (IMF) for a bailout.

The KSE-100 shot up from the moment trading began, but dipped later. It then recovered as investors, encouraged by low share prices, picked selected stocks. The exploration and production sector came under pressure following decline in international crude oil prices, but buying activity emerged in the sector before the end of the session.

At close, the benchmark KSE 100-share Index recorded an increase of 334.91 points or 0.89% to settle at 37,982.25.



Elixir Securities' analyst Murtaza Jafar said the benchmark KSE-100 index traded on both sides of the fence and finally ended the day up 0.89% on reported buying by local institutions in index names.

"On the results front, Engro Fertilizer (+4.57%) announced its 9MCY18 result, posting earnings per share (EPS) of Rs9.17 along with interim cash dividend of Rs4 per share - both the earnings and payout were higher than street consensus," Jafar said.

On the other hand, United Bank Limited (+0.46%) announced 9M2018 EPS of Rs7.96 along with interim cash dividend of Rs2 per share, dented by lower net interest income, higher provisioning expense and additional accrual related to pension liability.

"Going forward, the index is likely to face immediate resistance at 38,400-38,700," Jafar added.



Overall, trading volumes increased to 223.4 million shares compared with Wednesday's tally of 194.2 million. The value of shares traded during the day was Rs7.7 billion.

Shares of 374 companies were traded. At the end of the day, 275 stocks closed higher, 89 declined and 10 remained unchanged.

Lotte Chemical was the volume leader with 24.8 million shares, gaining one rupee to close at Rs15.22. It was followed by TRG Pakistan with 14.2 million shares, gaining Rs1.06 to close at Rs23 and Engro Polymer with 10.5 million shares, gaining Rs0.72 to close at Rs31.76.

Foreign institutional investors were net sellers of Rs249.7 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.