Market watch: Index posts gains for fourth successive session

Benchmark KSE-100 index increases 80.85 points to settle at 35,358.31

KARACHI: Stocks continued on the path to recovery, posting gains for the fourth successive session on Tuesday amid improving sentiments.

The KSE-100 opened on a positive note; however, the rally failed to maintain momentum and retreated into the red zone. Major scrips dipped in the later hours as profit booking was seen amid political concerns arising due to confusion over negotiations with Azadi march protestors.

At close, the benchmark KSE 100-share Index recorded an increase of 80.85 points, or 0.23%, to settle at 35,358.31.

JS Global analyst Maaz Mulla said equities closed Tuesday on a positive note with the benchmark KSE-100 Index gaining 81 points, closing at 35,358 levels, up 0.2%.

"We expect the market to post further gains as the political situation eases off," he added.

Cements were the major movers as DGKC (+2.3%), MLCF (+5.2%) and CHCC (+2.8%) closed in the positive trajectory, LUCK was the major laggard closing in the negative zone. Moreover, mixed sentiment was witnessed in chemicals where ENGRO (+1.5%) closed in the green. Furthermore, in the E&Ps, OGDC (+0.4%) closed in the positive zone whereas PPL (-0.2%) and POL (-0.4%) closed in the negative trajectory.

Further downward pressure was added by the financials where big banks HBL (-0.5%), UBL (-1.2%) and BAHL (-0.4%) closed in the negative zone.

"Moving ahead, we expect market to remain positive on the political front."

Meanwhile, an AHL Research report stated that the market showed vibrancy in the early hours of trading that saw an increase of 331 points in total, but ended the session lower.

"On the back of possible expansion from ARY Communications, WTL performed well and registered high trading volumes (27% of total volumes). In addition, overall trading volumes also hit a consecutive recent high of 300 million."

Overall, trading volumes increased to 308.5 million shares compared with Monday's tally of 207.8 million. The value of shares traded during the day was Rs8.7 billion.

Shares of 370 companies were traded. At the end of the day, 194 stocks closed higher, 153 declined and 23 remained unchanged.

WorldCall Telecom was the volume leader with 81.7 million shares, gaining Rs0.28 to close at Rs1.48. It was followed by Maple Leaf Cement XD XR with 15.3 million shares, gaining Rs0.94 to close at Rs19.09 and Lotte Chemical with 12.7 million shares, gaining Rs0.17 to close at Rs16.75.

Foreign institutional investors were net sellers of Rs236.2 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.