Market watch: KSE-100 rises 389 points as volumes hit 2019 high

Benchmark index gains 1.2% to settle at 32,752.26 points

KARACHI: The stock market enjoyed another bull run on Thursday, which helped the KSE-100 index rise 389 points as trading volumes touched a new peak for the current calendar year on the back of robust investor sentiment.

Positivity at the bourse prevailed mainly due to the meeting between businessmen and Chief of Army Staff Qamar Javed Bajwa late on Wednesday during which the army chief assured business players of improved security to pave the way for increased economic activity in the country.

Strong data of cement sales sparked renewed buying in the sector and all but one stock rose by the day's end.

The KSE-100 index dipped for a brief period after trading began but the losses were erased soon and the uptrend continued for the rest of the session, pushing the index above 32,700 points by the close of trade.

At close, the benchmark KSE 100-share Index recorded an increase of 388.91 points, or 1.2%, to settle at 32,752.26 points.

Arif Habib Limited, in its report, said the market remained pumped up for the entire session after an initial drop of 83 points following the start of trading.

"Although global oil prices showed negative trend, exploration and production stocks managed to stay afloat with nominal price gains," it said. "Several stocks of cement firms, refineries and oil marketing companies hit their upper circuit."

The meeting of businessmen with the army chief improved sentiment at the bourse on expectation of concrete steps being taken to lift the economy.

Investors put fears over Financial Action Task Force (FATF) conditions, higher interest rate and inflationary pressure on the back burner and took a positive view of the market. Overall trading volumes hit a new high for calendar year 2019 at 324 million shares.

The cement sector led the volumes with trading in 39.1 million shares, followed by power companies (37.8 million) and engineering firms (31.6 million).

K-Electric had turnover of 35.7 million shares, followed by Unity Foods (22.7 million) and Dost Steels (11.8 million), the report added.

Topline Securities, in its report, stated the KSE-100 index recorded a fourth consecutive positive session with a rise of 389 points or 1.2%.

"Cement stocks continue to remain on the investors' radar after recent hike in cement prices coupled with expectations of double-digit growth in sales," it said.

Pharmaceutical stocks including Searle, AGP, Ferozsons Laboratories, GlaxoSmithKline, IBL HealthCare and Macter International recorded gains of 5% each as media sources reported a possible hike in medicine prices.

Trading volumes hit an 11-month high at 324 million shares. K-Electric was the market leader followed by Unity Foods and Dost Steels, which cumulatively added 30 million shares to the total volume, the report said.

Overall, trading volumes increased to 324.3 million shares compared with Wednesday's tally of 181.4 million. The value of shares traded during the day was Rs9.1 billion.

Shares of 384 companies were traded. At the end of the day, 311 stocks closed higher, 63 declined and 10 remained unchanged.

K-Electric was the volume leader with 35.8 million shares, gaining Rs0.34 to close at Rs4.09. It was followed by Unity Foods with 22.7 million shares, gaining Rs0.72 to close at Rs10.22 and Dost Steels with 11.9 million shares, gaining Re1 to close at Rs4.51.

Foreign institutional investors were net sellers of Rs956.5 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.