Benchmark index increases 0.21% to settle at 37,243.20. PHOTO: AFP
KARACHI: The KSE-100 index extended gains on Thursday and rose 76 points with trading in over 300 million shares in a volatile session.
On the political front, the Jamiat Ulema-e-Islam-Fazl (JUI-F) ended its 13-day sit-in in Islamabad to press ahead with Plan B and block main highways across the country, which weakened investor sentiment in later hours of the session.
Earlier, trading began with a sharp spike and the KSE-100 index maintained the uptrend until midday. After that, investors resorted to profit-booking due to the absence of major positive triggers and fell into the negative territory.
A buying spree emerged in the final hour, which helped erase the losses and close in the positive zone.
At close, the benchmark KSE 100-share Index recorded an increase of 76.24 points, or 0.21%, to settle at 37,243.20.
Topline Securities, in its report, stated that during the trading hours, the index crossed 37,500, when profit-taking kicked in, dragging it down by 264 points to 37,243.
Honda Atlas Cars (HCAR) announced its financial results, which came in above market expectations. The automaker posted earnings per share of Rs3.57 for the second quarter of its financial year, as a result of which the stock hit its upper circuit.
Furthermore, major rebar manufacturers Amreli Steels and Mughal Iron and Steel gained 4.33% and 4.54% respectively due to an expected uptick in construction activity in the wake of Naya Pakistan Housing Programme.
Investor participation in terms of volumes improved and the turnover reached 336 million shares, up 22.1%, while traded value went down 6% at Rs10.2 billion.
The right shares offer of Maple Leaf Cement remained on the investors' radar as it recorded the highest volume of 39 million shares, followed by The Bank of Punjab and Pak Elektron, which cumulatively added 34 million shares to the total volume, the report added.
JS Global analyst Maaz Mulla said the benchmark index gained support from positive investor sentiment and touched an intra-day high of +340 points. It closed at 37,243, 76 points above Wednesday's close.
Volumes improved as 336 million shares were traded as compared to 275 million shares in the previous trading session.
The Bank of Punjab (+0.1%) from the banking sector was among the market leaders in terms of traded volume with 18 million shares changing hands.
On the news front, the JUI-F sit-in in the federal capital ended as Maulana Fazlur Rehman directed party workers to join Plan B of the Azadi March and block main highways across the country.
Cement, steel and banking sectors led the gains where Pioneer Cement (+4.4%), Cherat Cement (+4.9%), DG Khan Cement (+3.7%), International Steels (+5%), Amreli Steels (+4.3%), Mughal Iron and Steel (+4.5%), Meezan Bank (+4.6%), Bank Alfalah (+0.2%) and The Bank of Punjab (+0.1%) were major movers of the index.
"Moving ahead, we expect the market to remain positive in the medium term, however, in the short term profit-taking cannot be ruled out," the analyst added.
Overall, trading volumes increased to 336.4 million shares compared with Wednesday's tally of 275.4 million. The value of shares traded during the day was Rs10.2 billion.
Shares of 395 companies were traded. At the end of the day, 228 stocks closed higher, 150 declined and 17 remained unchanged.
Maple Leaf Cement (R) was the volume leader with 38.6 million shares, gaining Rs0.15 to close at Rs7.26. It was followed by The Bank of Punjab with 17.7 million shares, gaining Rs0.01 to close at Rs10.38 and Pak Elektron with 16.3 million shares, gaining Rs0.62 to close at Rs21.36.
Foreign institutional investors were net sellers of Rs16.7 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.
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