Market watch: KSE-100 extends gains, crosses 34,000 mark

Benchmark index jumps 314.69 points to settle at 34,052.61

KARACHI: Bulls kept their control over the stock market on Tuesday as well and helped the benchmark KSE-100 index rise past the 34,000-point mark.

A recovery in global stock markets coupled with increase in international crude oil prices helped strengthen investor sentiment and supported the uptrend at the local stock market.

The spike in crude prices enhanced investors’ interest in exploration and production and oil marketing companies’ stocks. As a result, both sectors closed entirely in the green.

In addition, the investors accumulated stocks in anticipation of a low inflation reading for June, which would pave the way for further monetary easing in July.

Earlier, the index shot up as soon as trading began and positive investor sentiment triggered a buying spree as market participants cherry-picked stocks throughout the day.

Towards midday, some of the gains were erased, however, the dip was corrected later in the day.

At close, the benchmark KSE-100 index recorded an increase of 314.69 points, or 0.93%, to settle at 34,052.61 points.

Arif Habib Limited, in its report, stated that the market followed the momentum seen on Monday and advanced another 335 points in intra-day trading. It closed the day up by 315 points.

“Traded volumes remained thin as have been the case in the past couple of sessions, mainly due to financial year-end mark-to-market valuation of portfolio stocks by institutional investors,” it said.

“Among exploration and production stocks, Oil and Gas Development Company came in the limelight with price gains, which was aided by upward movement in international crude oil prices.”

Similarly, PSO recorded price gains during the session. Banking sector stocks also traded largely in the positive territory.

The technology sector topped the volumes with trading in 20.9 million shares, followed by cement companies (15.5 million) and chemical firms (14.2 million), the report said.

Overall, trading volumes fell to 160.6 million shares compared with Monday’s tally of 161.3 million. The value of shares traded during the day was Rs5.6 billion.

Shares of 364 companies were traded. At the end of the day, 235 stocks closed higher, 97 declined and 32 remained unchanged.

TRG Pakistan was the volume leader with 11.8 million shares, gaining Rs1.94 to close at Rs27.83. It was followed by Unity Foods with 11.1 million shares, gaining Rs0.4 to close at Rs11.74 and Maple Leaf Cement with 6.98 million shares, gaining Rs0.61 to close at Rs25.12.

Foreign institutional investors were net sellers of Rs366.7 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.