Market watch: KSE-100 recoups massive loss, gains 104 points

Benchmark index increases 0.29% to close at 36,060.88 points

In line with the trend in the preceding trading session, the stock market continued to bleed in the first session on Friday as the index slumped over 1,600 points.

Bears maintained firm control over the stock market and investors continued to book profits, following a crash in financial markets across the world amid deepening coronavirus fears.

In the morning, trading kicked off on a negative note with the KSE-100 index nosediving, which triggered a 45-minute trading halt for the third time this week.

However, the index managed to post a decent recovery after the resumption of trading and closed in the black, gaining over 100 points.

The upward trend came on the back of speculation ahead of the State Bank of Pakistan's monetary policy announcement on March 17 and the recovery in international crude oil prices, which renewed foreign investor interest.

Furthermore, a stronger domestic economic outlook amid falling energy prices pushed the benchmark stock index upwards after a decrease of over 1,600 points during intra-day trading.

At close, the benchmark KSE-100 index recorded an increase of 104.19 points, or 0.29%, to settle at 36,060.88.

Arif Habib Limited, in its report, stated that the third consecutive halt to trading was triggered by one of the largest pullbacks in recent times at the bourse.

"Initially, the market opened on a negative note with a decline of 614 points; the situation worsened and caused trading halt at -1,683 points around 9:25 am," the report said.

"The market reopened at -1,267 points, registering a recovery of 416 points and continued to run on the recovery path by the close of first session. However, the second session opened down by 347 points, which later registered a recovery of 1,336 points."

Later, the index swung back into negative territory and yet again managed to post a recovery when the index gained 256 points (unadjusted).

The report said when the index rose 256 points, the recovery was mainly seen in oil and gas, banking and cement sectors, which had a heavy weightage in the index.

It added that the market recovery followed improving sentiment in regional and global markets. Moreover, international crude prices recorded intra-day gain of 5% that strengthened investor sentiment in relevant stocks.

Stocks that contributed significantly to the volumes included The Bank of Punjab, Maple Leaf Cement, Fauji Cement, Hascol Petroleum and DG Khan Cement, which accounted for 38% of the total volume.

JS Global analyst Maaz Mulla said the stock market opened with a free fall as the index plummeted over 1,600 points in intra-day trading. "The drastic fall pushed KSE-100 below the 34,267 mark, triggering a halt to trading," he said.

Major recovery was witnessed in the exploration and production and cement sectors but in the meantime pressure was witnessed in the banking sector.

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

Overall, trading volumes increased to 290.5 million shares compared with Thursday's tally of 230.7 million. The value of shares traded during the day was Rs13.97 billion.

Shares of 354 companies were traded. At the end of the day, 158 stocks closed higher, 182 declined and 14 remained unchanged.

The Bank of Punjab was the volume leader with 31.1 million shares, losing Rs0.10 to close at Rs10.10. It was followed by Maple Leaf Cement with 25.7 million shares, gaining Rs0.16 to close at Rs27.58 and Fauji Cement with 20.9 million shares, losing Rs0.01 to close at Rs17.18.

Foreign institutional investors were net sellers of Rs1.94 billion worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.