Market watch: KSE-100 index advances 155 points amid choppy trading

Benchmark index increases 0.37% to settle at 41,609.03

KARACHI: The stock market observed mixed sentiments over the course of the trading session on Tuesday, ending the day positive to extend the rally for the fifth successive session.

The KSE-100 index shot up from the moment trading began, increasing 339 points in intra-day trading to hit a high of 41,792.81, amid choppy trading. The rally was witnessed due to the recent funding from Saudi Arabia and anticipation of additional financial support of similar pattern form the United Arab Emirates (UAE) and China in the upcoming weeks.

Speaking in the lower house, Finance Minister Asad Umar said although the funding has provided some support to the country’s foreign exchange reserves, going to the International Monetary Fund (IMF) still seems inevitable; which further moved market sentiments.

The cement sector remained the major contributor to the market on the back of expectations of export package from the government, and construction of dams and the prime minister's housing scheme.



At the end of trading, the benchmark KSE 100-share Index recorded an increase of 155.27 points or 0.37% to settle at 41,609.03.

Elixir Securities' analyst Murtaza Jafar said equities closed positive with the KSE-100 Index settling above the 41,600 level.

“Cements contributed the most to the market momentum with DG Khan Cement (+5%), Maple Leaf Cement Factory (+5%), Pioneer Cement (+5%) and Cherat Cement (+5%) closing at their upper circuits,” he remarked.

Meanwhile, Habib Bank Limited (+4.1%) took the lead in the financial sector, contributing 103 points to the day’s gain.

“On the results front, retail-favourite Pak Electron (-4.98%) announced its 3Q2018 result, posting earnings per share (EPS) of Rs0.21 for the quarter - a continued disappointment from the white goods manufacturer, owing to margin attrition and loss of market share,” Jafar said.

“With the index having gained a phenomenal 10% in just five trading sessions, we expect market to consolidate in the range of 40,700 to 41,800 levels.



“Any positive developments from the prime minister’s visit to China should keep sentiments alive; however, expectations of $6-9 billion package from the friendly neighbours are now beginning to be priced in.”

Overall, trading volumes decreased to 327.8 million shares compared with Monday's tally of 461.1 million. The value of shares traded during the day was Rs12.3 billion.

Shares of 386 companies were traded. At the end of the day, 142 stocks closed higher, 234 declined and 10 remained unchanged.

The Bank of Punjab was the volume leader with 33 million shares, losing Rs0.12 to close at Rs12.96. It was followed by Pak Elektron with 24.5 million shares, losing Rs1.30 to close at Rs31.46 and TRG Pakistan with 22.9 million shares, losing Rs0.92 to close at Rs28.13.

Foreign institutional investors were net buyers of Rs187.5 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.