Market watch: KSE-100 reverses bearish trend, gains 78 points

Benchmark index increases 0.25% to settle at 31,829.24 points

KARACHI: A topsy-turvy session at the Pakistan Stock Exchange ended on a positive note on Tuesday as the benchmark index managed to end bearish trend of the past two sessions.

The KSE-100 opened downwards and continued to slide during the day as market participants remained on the sidelines. Buying was limited as investor confidence remained weak after the Trump-Khan meeting failed to ignite any excitement among investors.

An overall lack of triggers and uncertain economic situation also kept the activity muted.

At close, the benchmark KSE 100-share Index recorded an increase of 78.03 points, or 0.25%, to settle at 31,829.24 points.

JS Global analyst Maaz Mulla said after two days of negative close, the market traded in the green. It opened upwards before retracing its steps to touch a low of 315 points, he said.

On the news front, US President Donald Trump reiterated his offer to mediate between Pakistan and India on the Kashmir dispute and lauded Prime Minister Imran Khan's political wisdom and leadership role for regional peace and development.

"Mixed sentiments were seen in the cement sector where Lucky Cement (+1.1%) and Fauji Cement (+0.1%) moved up while Maple Leaf Cement (-4%), DG Khan Cement (-0.9%) and Pioneer Cement (-0.9%) were in the red," he said.

Investor interest was witnessed in the exploration and production (E&P) sector where heavy volumes were registered in Pakistan Petroleum Limited (+1.5%) and Oil and Gas Development Company (+0.4%).

"Moving forward, we expect the market to consolidate at these levels and recommend investors to accumulate valuable stocks on dips," Mulla added.

Overall, trading volumes increased to 88.8 million shares compared with Monday's tally of 86.6 million. The value of shares traded during the day was Rs3.88 billion.

Shares of 341 companies were traded. At the end of the day, 183 stocks closed higher, 137 declined and 21 remained unchanged.

Maple Leaf Cement was the volume leader with 17.7 million shares, losing Rs0.59 to close at Rs14.15. It was followed by K-Electric with 4.6 million shares, gaining Rs0.02 to close at Rs3.26 and Fauji Cement XD with 2.9 million shares, gaining Rs0.01 to close at Rs12.63.

Foreign institutional investors were net sellers of Rs529.1 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.