Bullish momentum prevailed at the Pakistan Stock Exchange on Friday as investors took cue from previous day’s trend and pushed the benchmark index higher.
The market got off to a positive start and the index moved upwards with investors waiting for central bank’s monetary policy statement at the start of next week.
Furthermore, market players cherished the rebound in international crude oil market and made fresh investment in oil stocks, which closed in the green.
However, the release of disappointing foreign direct investment (FDI) data on Thursday, which slowed down to a 12-month low in August, drove down the market and investors resorted to offloading their stockholdings.
At close, the benchmark KSE-100 index recorded an increase of 170 points, or 0.40%, to close at 42,504.76 points.
Arif Habib Limited, in its report, stated that ahead of the monetary policy announcement - scheduled for Monday - and rebalancing of the FTSE 100 index, the market reacted positively.
“Oil and Gas Development Company (OGDC), Pakistan State Oil (PSO), Engro Corporation and UBL pushed the index in the green,” it said.
“Unity Foods recorded brisk activity with high volumes and hit its upper circuit on expectation of higher earnings, short-sell positions and ahead of the issue of right shares, which will be credited into investors’ accounts on September 25.”
The report added that a rebound in international crude oil prices helped OGDC, Pakistan Petroleum and especially Pakistan Oilfields gained lost ground whereas K-Electric registered high volumes.
The cement sector faced selling pressure without losing much ground in terms of stock prices.
The transport sector topped the volumes with trading in 78.1 million shares, followed by power firms (76.4 million) and food companies (66.9 million).
Individually, stocks that contributed positively to the index included OGDC (+43 points), Fauji Foods (+28 points), UBL (+27 points), Meezan Bank (+20 points) and Pakistan Oilfields (+15 points).
Stocks that contributed negatively were Kot Addu Power Company (-19 points), Dawood Hercules (-14 points), Pakistan Tobacco (-9 points), Engro Polymer and Chemicals (-7 points) and Lucky Cement (-7 points).
JS Global analyst Maaz Mulla said the benchmark KSE-100 index closed up by 170 points at 42,505. “Overall, range-bound activity was seen in the market,” he added.
“Traded value stood at $82 million and volumes came in at 516 million shares, up 1%.”
On the news front, the World Bank’s International Centre for Settlement of Investment Disputes (ICSID) granted a stay order against the enforcement of a massive penalty of $6 billion imposed on Pakistan for denying mining lease to the Reko Diq project of Tethyan Copper Company (TCC),” Mulla stated.
Pakistan International Bulk Terminal (+4.7%) and Kot Addu Power Company (-6.2%) declared their FY20 results, where they posted earnings per share of Rs0.64 and Rs26.83 respectively with no cash payout.
“Going forward, we expect the market to continue a similar trend as monetary policy is expected to be announced on Monday and recommend investors to see any upside as an opportunity to sell," the analyst said.
“However, we recommend that any downside should be viewed as an opportunity to buy in cement, steel, consumer and refinery sectors.”
Overall, trading volumes rose to 516.1 million shares compared with Thursday’s tally of 508.7 million. The value of shares traded during the day was Rs13.6 billion.
Shares of 417 companies were traded. At the end of the day, 184 stocks closed higher, 210 declined and 23 remained unchanged.
Pakistan International Bulk Terminal was the volume leader with 75.5 million shares, gaining Rs0.63 to close at Rs13.98. It was followed by Unity Foods with 45.3 million shares, gaining Rs1.26 to close at Rs18.09 and Fauji Foods with 38.9 million shares, gaining Rs0.71 to close at Rs19.32.
Foreign institutional investors were net sellers of Rs25.96 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.
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