Market watch: KSE-100 advances amid volatile trading

Benchmark index increases 123.78 points to settle at 41,768.66

KARACHI: A highly volatile session was witnessed at the Pakistan Stock Exchange on Tuesday as unfolding developments on the domestic economic and political fronts made investors wary.

However, despite sharp swings, the index managed to finish the day in the green.

Earlier, trading commenced on a positive note when the index powered past the 42,000-point mark, led by oil and banking stocks, following an upbeat economic outlook. However, the uptrend proved short-lived as market participants reacted to the news that the Oil and Gas Regulatory Authority (Ogra) had approved a massive hike in gas tariffs.

Further dent to the market sentiment came after a special court announced its ruling in a case against former president Pervez Musharraf.

In an unprecedented judgement in the nation's history, the special court while hearing the high treason case sentenced the former military ruler to death. The news sent shockwaves throughout the bourse as the index dived nearly 600 points in intra-day trading.

At close, the benchmark KSE 100-share Index recorded an increase of 123.78 points, or 0.30%, to settle at 41,768.66.

JS Global analyst Maaz Mulla said bulls dominated trading in the early hours as the benchmark KSE-100 index touched an intra-day high of 411 points. However, the index took a sharp turn downwards as news emerged that former president General (Retired) Pervez Musharraf was handed a death sentence.

"As a result, the index hit an intra-day low of 619 points before recovering to close at 41,769, up 124 points. Major movers for the KSE-100 index were Pakistan Petroleum Limited (+5%), Oil and Gas Development Company (+5%), HBL (+3.1%) and Dawood Hercules (+5%)," he said.

On the flipside, major laggards of the index were Fauji Fertiliser Company (-2.9%), Hubco (-1.9%), Pakistan State Oil (-2.3%) and Lucky Cement (-1.6%).

"Moving ahead, we recommend any major dips in the market should be taken as an opportunity to accumulate value stocks," Mulla added.

An Aba Ali Habib report stated that the bourse finished the choppy session with a gain of 123.78 points due to mixed sentiment stemming from the domestic political developments.

"Stocks opened on positive note and breached the 42,000 mark, but gains vanished quickly after investors priced in the impact of a proposed 191% hike in gas tariffs, affecting key sectors of the economy," it said.

On the political front, uncertainty emerged after a special court handed death sentence to former president Pervez Musharraf in a high treason trial.

Overall, trading volumes increased to 412.3 million shares compared with Monday's tally of 357.8 million. The value of shares traded during the day was Rs17.6 billion.

Shares of 384 companies were traded. At the end of the day, 130 stocks closed higher, 238 declined and 16 remained unchanged.

Fauji Foods was the volume leader with 40.6 million shares, gaining Rs0.88 to close at Rs16.81. It was followed by Hascol (R) with 35.6 million shares, losing Rs0.80 to close at Rs12.86 and Unity Foods with 26.2 million shares, losing Rs0.27 to close at Rs15.54.

Foreign institutional investors were net buyers of Rs423.5 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.