Market watch: KSE-100 climbs 385 points on buying in index-heavy stocks
Benchmark index rises 1.3% to settle at 30,057.29
Benchmark index rises 1.3% to settle at 30,057.29. PHOTO: AFP
KARACHI:
Stocks bounced back on Monday as the benchmark KSE-100 index gained 385 points and closed above the 30,000-point mark led by buying activity in index-heavy sectors.
Earlier during the day, trading activity remained suspended for some time at the Pakistan Stock Exchange (PSX) owing to a technical glitch. Finally, trading began at 10:15am against the scheduled time of 9:30am.
The index started soaring at the beginning of trading and rose over 500 points in the first hour but gains were erased partially by midday due to volatility. A buying spree towards the end of the session made the KSE-100 close on a positive note.
At close, the benchmark KSE 100-share Index recorded an increase of 385.17 points, or 1.3%, to settle at 30,057.29 points.
JS Global analyst Maaz Mulla said the KSE-100 index recorded some recovery after two consecutive sessions of losses and closed with a gain of 385 points at 30,057.
"The market kicked off the day on a bright note, touching off an intra-day high of +506 points," he said. Major heavyweights for the day were Pakistan Petroleum (+3.7%), Bank AL Habib (+3.2%), Fauji Fertiliser (+1.9%), UBL (+1.9%) and HBL (+1.3%).
Trading volumes decreased 30% over the previous session to 77 million shares, while traded value fell $17 million. Volume leaders were Maple Leaf Cement (+2.8%), K-Electric (+6.6%) and Oil and Gas Development Company (+1.3%).
Investor interest was witnessed in exploration and production and banking stocks, where Pakistan Petroleum (+3.7%), Oil and Gas Development Company (+1.3%), HBL (+1.3%), UBL (+1.9%), NBP (+2.7%) and Bank Alfalah (+3%) were major gainers of the day.
The cement sector joined the upward march where Pioneer Cement (+2.9%), Maple Leaf Cement (+2.8%), Fauji Cement (+2.4%) and DG Khan Cement (+0.5%) gained ground compared to their previous session's close.
"Moving ahead, we expect the market to remain volatile due to FATF and geo-political concerns. We recommend investors to stay cautious at current levels," the analyst said.
Arif Habib Limited, in its report, stated after encountering a technical glitch at the start of trading, the index progressed well during the day, led by across-the-board buying activity in exploration and production, financial, cement and steel sectors.
"The main reason behind the surge in the index was a host of measures approved by the Securities and Exchange Commission of Pakistan over the weekend that have helped investors take a positive view of equities," it said.
"Besides, there is expectation of a lower inflation reading going forward that hints at reduction in the State Bank of Pakistan policy rate."
Overall, the index went high by 506 points during the session and although it receded later but rebounded before the close of market.
Overall, trading volumes decreased to 77.45 million shares compared with Friday's tally of 110 million. The value of shares traded during the day was Rs2.6 billion.
Shares of 331 companies were traded. At the end of the day, 232 stocks closed higher, 81 declined and 18 remained unchanged.
WorldCall Telecom was the volume leader with 12.2 million shares, gaining Rs0.07 to close at Rs0.82. It was followed by Maple Leaf Cement with 6.3 million shares, gaining Rs0.48 to close at Rs17.67 and Oil and Gas Development Company with 4.1 million shares, gaining Rs1.4 to close at Rs105.96.
Foreign institutional investors were net sellers of Rs240.2 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.
Stocks bounced back on Monday as the benchmark KSE-100 index gained 385 points and closed above the 30,000-point mark led by buying activity in index-heavy sectors.
Earlier during the day, trading activity remained suspended for some time at the Pakistan Stock Exchange (PSX) owing to a technical glitch. Finally, trading began at 10:15am against the scheduled time of 9:30am.
The index started soaring at the beginning of trading and rose over 500 points in the first hour but gains were erased partially by midday due to volatility. A buying spree towards the end of the session made the KSE-100 close on a positive note.
At close, the benchmark KSE 100-share Index recorded an increase of 385.17 points, or 1.3%, to settle at 30,057.29 points.
JS Global analyst Maaz Mulla said the KSE-100 index recorded some recovery after two consecutive sessions of losses and closed with a gain of 385 points at 30,057.
"The market kicked off the day on a bright note, touching off an intra-day high of +506 points," he said. Major heavyweights for the day were Pakistan Petroleum (+3.7%), Bank AL Habib (+3.2%), Fauji Fertiliser (+1.9%), UBL (+1.9%) and HBL (+1.3%).
Trading volumes decreased 30% over the previous session to 77 million shares, while traded value fell $17 million. Volume leaders were Maple Leaf Cement (+2.8%), K-Electric (+6.6%) and Oil and Gas Development Company (+1.3%).
Investor interest was witnessed in exploration and production and banking stocks, where Pakistan Petroleum (+3.7%), Oil and Gas Development Company (+1.3%), HBL (+1.3%), UBL (+1.9%), NBP (+2.7%) and Bank Alfalah (+3%) were major gainers of the day.
The cement sector joined the upward march where Pioneer Cement (+2.9%), Maple Leaf Cement (+2.8%), Fauji Cement (+2.4%) and DG Khan Cement (+0.5%) gained ground compared to their previous session's close.
"Moving ahead, we expect the market to remain volatile due to FATF and geo-political concerns. We recommend investors to stay cautious at current levels," the analyst said.
Arif Habib Limited, in its report, stated after encountering a technical glitch at the start of trading, the index progressed well during the day, led by across-the-board buying activity in exploration and production, financial, cement and steel sectors.
"The main reason behind the surge in the index was a host of measures approved by the Securities and Exchange Commission of Pakistan over the weekend that have helped investors take a positive view of equities," it said.
"Besides, there is expectation of a lower inflation reading going forward that hints at reduction in the State Bank of Pakistan policy rate."
Overall, the index went high by 506 points during the session and although it receded later but rebounded before the close of market.
Overall, trading volumes decreased to 77.45 million shares compared with Friday's tally of 110 million. The value of shares traded during the day was Rs2.6 billion.
Shares of 331 companies were traded. At the end of the day, 232 stocks closed higher, 81 declined and 18 remained unchanged.
WorldCall Telecom was the volume leader with 12.2 million shares, gaining Rs0.07 to close at Rs0.82. It was followed by Maple Leaf Cement with 6.3 million shares, gaining Rs0.48 to close at Rs17.67 and Oil and Gas Development Company with 4.1 million shares, gaining Rs1.4 to close at Rs105.96.
Foreign institutional investors were net sellers of Rs240.2 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.