Market watch: KSE-100 extends gains in volatile trading

Benchmark index rises 169.88 points to settle at 35,572.95

KARACHI: The stock market endured a volatile session on Friday but it still managed to close with a gain of 170 points in the KSE-100 index, which was its fourth successive session in the positive.

According to Arif Habib Limited analyst Ahsan Mehanti, the bullish trend continued at the bourse in anticipation of likely execution of a market support fund next week.

Mid-session pressure emerged because of weak automobile sales data for May 2019 and an all-time low the rupee hit against the greenback, he said.

According to the analyst, inflow of higher remittances in May 2019, higher global crude oil prices and hopes of external account stability amid rupee depreciation played the role of catalysts in the bullish close.

Despite the uncertainty, stocks of cement and exploration and production companies gained with majority of the stocks ending positive. On the other hand, fertiliser stocks bore the brunt of volatility and were mostly in the red.

The first session began on a positive note but uncertainty emerged and the bourse oscillated to close on a flat note. The second session opened downwards but stocks rallied later, wiping out the losses and nearing the 35,600-point mark.

At the end of trading, the benchmark KSE 100-share Index recorded an increase of 169.88 points, or 0.48%, to settle at 35,572.95.

JS Global analyst Maaz Mulla said equities ended the week on a positive note with the benchmark KSE-100 index gaining 170 points, closing at 35,573.

"The bourse kicked off trading on a negative note, hitting a low of -107 points but later recovered, touching a high of +256 points," he said.

Cement and exploration and production sectors were the major gainers where DG Khan Cement (+5%), Maple Leaf Cement (+5%), Kohat Cement (+5%) and Cherat Cement (+5%) hit their respective upper circuits whereas Lucky Cement (+3.8%) also moved up.

In the exploration and production sector, Pakistan Petroleum (+0.6%), Oil and Gas Development Company (+1.3%) and Pakistan Oilfields (+1.2%) remained in the green.

Mixed sentiments were seen in the financial sector where HBL (-0.4%), UBL (-0.8%) and MCB Bank (-0.3%) remained in the red, however, Bank AL Habib (+1.8%) was positive.

Average daily traded value stood at $48 million, up 31% and volumes stood at 168 million shares, up 9%. Major contribution to the total market volume came from Maple Leaf Cement (+5%), TRG Pakistan (+5.5%) and Fauji Cement (+6.3%).

"We expect the equity market to remain choppy and volatile," the analyst added.

Overall, trading volumes increased to 167.88 million shares compared with Thursday's tally of 154.32 million. The value of shares traded during the day was Rs7.6 billion.

Shares of 338 companies were traded. At the end of the day, 156 stocks closed higher, 160 declined and 22 remained unchanged.

Maple Leaf Cement was the volume leader with 15.5 million shares, gaining Rs1.2 to close at Rs25.3. It was followed by TRG Pakistan with 11.6 million shares, gaining Rs0.93 to close at Rs17.72 and Fauji Cement with 11 million shares, gaining Re1 to close at Rs16.92.

Foreign institutional investors were net sellers of Rs979.32 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.