Market watch: KSE-100 extends gains, rises 281 points

Benchmark index increases 0.86% to settle at 33,033.32 points

​ Our Correspondent October 04, 2019
Benchmark index increases 0.86% to settle at 33,033.32 points. PHOTO: AFP

KARACHI: The benchmark KSE-100 index extended gains on Friday and crossed the 33,000-point mark due to robust investor sentiment following a meeting between Army Chief Qamar Javed Bajwa and prominent businessmen.

In the morning, trading began on a positive note, but the first session remained largely range bound due to a lack of positive triggers. Hence, the index oscillated between green and red zones and ended the session with a gain of about 100 points.

Bullish sentiment prevailed in the second session, which began with a buying spree that continued till the end, helping the index close with handsome gains.

At close, the benchmark KSE 100-share Index recorded an increase of 281.06 points, or 0.86%, to settle at 33,033.32 points.

In a report, Arif Habib Limited stated that the market continued to ascend with an overall increase of 302 points and closed at that level (unadjusted).

"Buying activity was mainly seen in cement and steel sectors, and was further aided by oil and gas marketing companies, exploration and production firms and banks," it said.

Optimism in the market was fueled by the meeting of leading businessmen with the army chief, the prime minister and his economic team, which sparked hope among market participants about resolution of the issues afflicting the bourse for long.

The technology sector topped the volumes table with trading in 50.1 million shares, followed by cement companies (35.8 million) and engineering firms (31.1 million).

Among individual stocks, WorldCall Telecom emerged as the leader with trading in 33.2 million shares followed by Dost Steels (15.2 million) and Unity Foods (13.5 million), the report added.

JS Global analyst Danish Ladhani said equities closed the week on a positive note with the benchmark KSE-100 index gaining 281 points and closing at 33,033, up 0.9%.

The bourse continued its upward march on the back of some relief on the political front, though the Jamiat Ulema-e-Islam-Fazl chief had announced the Azadi (freedom) March towards Islamabad on October 27, which might cause sell-off pressure in the upcoming trading sessions.

Oil and Gas Development Company (+2.1%) and Pakistan Petroleum (+0.8%) were the major gainers in the exploration and production sector as crude oil edged up in the international market.

In the cement sector, Cherat Cement (+4.9%) closed near its upper circuit whereas Fauji Cement (-1.1%) remained negative. In the fertiliser sector, Fauji Fertiliser (+1.9%) and Engro Fertilisers (+1.4%) were the major gainers.

Mixed sentiment was seen in the financial sector where NBP (+5%) and Bank AL Habib (+1.2%) were the main gainers whereas UBL (-0.8%) was in the red zone.

Traded value stood at $48 million, down 18% and volumes stood at 262 million shares, down 19%. Major contribution to the total market volume came from WorldCall Telecom, Dost Steels, Unity Foods, Maple Leaf Cement and TRG Pakistan.

"Moving ahead, we expect the market to remain positive following the easing of political pressure," the analyst said.

Overall, trading volumes decreased to 261.8 million shares compared with Thursday's tally of 324.3 million. The value of shares traded during the day was Rs7.5 billion.

Shares of 387 companies were traded. At the end of the day, 248 stocks closed higher, 120 declined and 19 remained unchanged.

WorldCall Telecom was the volume leader with 33.2 million shares, gaining Rs0.08 to close at Rs1.26. It was followed by Dost Steels with 15.2 million shares, gaining Re1 to close at Rs5.51 and Unity Foods with 13.5 million shares, losing Rs0.29 to close at Rs9.93.

Foreign institutional investors were net buyers of Rs50.2 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.


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