Market watch: KSE-100 gains 100 points as bank stocks rally
Benchmark index rises 0.28% to settle at 36,504.25
Benchmark index rises 0.28% to settle at 36,504.25. PHOTO: AFP
KARACHI:
The stock market oscillated between green and red zones throughout the day on Wednesday, but closed with a moderate increase of 100 points, supported mainly by the financial sector.
Stock investors primarily focused on the financial sector following announcement of better results by some major banks. Post-result announcement, all the relevant stocks rose in terms of price and volume, but later profit-booking wiped out almost all the gains in the cement sector.
Stocks in the exploration and production sector also remained in the limelight in the wake of increase in crude oil prices in a tightening international market after the US imposed full-fledged sanctions on Iranian oil exports.
Earlier, trading began on a positive note, but profit-booking emerged again and again, which prevented the benchmark index from notching up handsome gains.
The market crossed the 36,700-point mark multiple times, but weak investor sentiments dragged it down each time. A selling spree towards the end of the session wiped over 200 points off the index. Nevertheless, the market closed in the black.
At the end of trading, the benchmark KSE 100-share Index recorded an increase of 100.22 points, or 0.28%, to settle at 36,504.25.
JS Global analyst Danish Ladhani said equities closed on a positive note with the benchmark KSE-100 index gaining 100 points.
"The market traded positive as banks rallied due to better-than-expected results," he said, adding UBL (+2.9%), HBL (+0.7%) and MCB Bank (+0.02%) reported their 1QCY19 results on Wednesday.
"Fauji Fertiliser Bin Qasim (-5%) in the fertiliser sector closed at its lower circuit as the company announced 1QCY19 consolidated loss per share (LPS) of Rs2.39 versus LPS Rs0.26 during 1QCY18 with no cash payout."
In the chemical sector, Engro Polymer (-1.9%) announced 1QCY19 consolidated earnings per share (EPS) of Rs1.20 versus Rs2.07 during 1QCY18.
Mixed sentiments were witnessed in the cement sector where DG Khan Cement (-0.6%) closed negative as the company reported 9MFY19 consolidated EPS of Rs5.71 versus Rs10.82 during 9MFY18. However, Lucky Cement (+0.1%) and Fauji Cement (+0.9%) remained in the green zone.
UBL (+2.9%), Hubco (+2.5%), OGDC (+0.8%), HBL (+0.7%) and Engro (+0.6%) were among top stocks that cumulatively contributed 120 points to the positive close of the benchmark index.
Traded value stood at $33 million, down 8% and volumes came in at 116 million shares, down 3%.
"We expect the market to remain choppy and volatile. We recommend investors to stay cautious in the short run ahead of IMF meetings," the analyst added.
Overall, trading volumes decreased to 116 million shares compared with Tuesday's tally of 119.6 million. The value of shares traded during the day was Rs4.6 billion.
Shares of 336 companies were traded. At the end of the day, 133 stocks closed higher, 183 declined and 20 remained unchanged.
Lotte Chemical was the volume leader with 9.8 million shares, gaining Rs0.32 to close at Rs16.48. It was followed by The Bank of Punjab with 8.8 million shares, gaining Rs0.11 to close at Rs12.01 and TRG Pakistan with 8.2 million shares, losing Rs0.21 to close at Rs19.01.
The stock market oscillated between green and red zones throughout the day on Wednesday, but closed with a moderate increase of 100 points, supported mainly by the financial sector.
Stock investors primarily focused on the financial sector following announcement of better results by some major banks. Post-result announcement, all the relevant stocks rose in terms of price and volume, but later profit-booking wiped out almost all the gains in the cement sector.
Stocks in the exploration and production sector also remained in the limelight in the wake of increase in crude oil prices in a tightening international market after the US imposed full-fledged sanctions on Iranian oil exports.
Earlier, trading began on a positive note, but profit-booking emerged again and again, which prevented the benchmark index from notching up handsome gains.
The market crossed the 36,700-point mark multiple times, but weak investor sentiments dragged it down each time. A selling spree towards the end of the session wiped over 200 points off the index. Nevertheless, the market closed in the black.
At the end of trading, the benchmark KSE 100-share Index recorded an increase of 100.22 points, or 0.28%, to settle at 36,504.25.
JS Global analyst Danish Ladhani said equities closed on a positive note with the benchmark KSE-100 index gaining 100 points.
"The market traded positive as banks rallied due to better-than-expected results," he said, adding UBL (+2.9%), HBL (+0.7%) and MCB Bank (+0.02%) reported their 1QCY19 results on Wednesday.
"Fauji Fertiliser Bin Qasim (-5%) in the fertiliser sector closed at its lower circuit as the company announced 1QCY19 consolidated loss per share (LPS) of Rs2.39 versus LPS Rs0.26 during 1QCY18 with no cash payout."
In the chemical sector, Engro Polymer (-1.9%) announced 1QCY19 consolidated earnings per share (EPS) of Rs1.20 versus Rs2.07 during 1QCY18.
Mixed sentiments were witnessed in the cement sector where DG Khan Cement (-0.6%) closed negative as the company reported 9MFY19 consolidated EPS of Rs5.71 versus Rs10.82 during 9MFY18. However, Lucky Cement (+0.1%) and Fauji Cement (+0.9%) remained in the green zone.
UBL (+2.9%), Hubco (+2.5%), OGDC (+0.8%), HBL (+0.7%) and Engro (+0.6%) were among top stocks that cumulatively contributed 120 points to the positive close of the benchmark index.
Traded value stood at $33 million, down 8% and volumes came in at 116 million shares, down 3%.
"We expect the market to remain choppy and volatile. We recommend investors to stay cautious in the short run ahead of IMF meetings," the analyst added.
Overall, trading volumes decreased to 116 million shares compared with Tuesday's tally of 119.6 million. The value of shares traded during the day was Rs4.6 billion.
Shares of 336 companies were traded. At the end of the day, 133 stocks closed higher, 183 declined and 20 remained unchanged.
Lotte Chemical was the volume leader with 9.8 million shares, gaining Rs0.32 to close at Rs16.48. It was followed by The Bank of Punjab with 8.8 million shares, gaining Rs0.11 to close at Rs12.01 and TRG Pakistan with 8.2 million shares, losing Rs0.21 to close at Rs19.01.