Market watch: KSE-100 snaps losing streak, ends just shy of 46,000

KARACHI:

The Pakistan Stock Exchange (PSX) staged a rebound on Thursday and resumed its uptrend owing to overall optimism on the back of some positive triggers.

The rally was witnessed in anticipation of the outcome of Financial Action Task Force (FATF) meeting. Investors remained optimistic as they waited anxiously for the result of the huddle.

Further fuelling the rise, the international crude oil prices hovered near 13-month highs, which enhanced investors’ interest in local oil sector stocks.

On the other hand, reports of rupee strengthening to a three-month high at 158.75 in the inter-bank market on Wednesday also acted as a catalyst and spurred investors’ interest.

Moreover, strong financial results posted during the day kept the morale of market players at high levels throughout the trading session.

Earlier, trading began on a positive note and the benchmark KSE-100 index continued to march upwards throughout the session. Bulls pushed the index close to the 46,000-point mark.

At close, the benchmark KSE-100 index recorded an increase of 603.05 points, or 1.33%, to settle at 45,965.63 points.

Arif Habib Limited, in its report, stated that the market took cue from UBL’s financial results along with declaration of Rs9.5-per-share dividend, which was announced at the pre-opening session. The index added a total of 642 points during the day.

Besides, the index moved up in anticipation of FATF decision on Pakistan’s status in the grey list, the report added.

The index closed up by 603 points. Sentiment remained buoyant throughout the session and price gains were observed across the board.

Sectors contributing to the performance included banks (+160 points), cement (+145 points), technology (+95 points), fertiliser (+42 points) and power (+41 points).

Individually, stocks that contributed positively to the index included TRG Pakistan (+96 points), Lucky Cement (+87 points), UBL (+57 points), HBL (+50 points) and Engro Corporation (+27 points).

Stocks that contributed negatively were MCB Bank (-10 points), Dawood Hercules Corporation (-8 points), Nishat Mills (-6 points), EFU General Insurance (-6 points) and Philip Morris (-5 points).

JS Global analyst Maaz Mulla said bulls returned to the PSX where the KSE-100 index touched intra-day high of +642 points. It closed the trading session at 45,965, up 603 points.

The market witnessed buying interest from investors. Telecard Limited (+14.5%), Byco Petroleum (+3.5%), Unity Foods (+2.8%), K-Electric (+3.5%) and TRG Pakistan (+6.5%) were the volume leaders, which contributed a cumulative 166 million shares to the total traded volume.

In the banking sector, UBL (+4.1%) declared its CY20 result, where the bank posted earnings per share of Rs17.07 and announced cash dividend of Rs9.50 per share.

In the cement sector, Maple Leaf Cement (+2.3%) and Pioneer Cement (+1.3%) declared their half-year results, posting earnings of Rs1.48 and Rs2.67 per share respectively. None of the two companies announced cash dividend.

Similarly, a host of results were announced in the textile sector. Nishat Chunian (-0.8%) and Nishat Mills (-1.5%) recorded unconsolidated earnings of Rs5.64 and Rs5.04 per share respectively for 1HFY21 while Gul Ahmed Textile Mills (-0.5%) reported consolidated earnings of Rs4.41 per share for the period.

Moreover, Unity Foods (+2.8%) from the food sector declared its 1HFY21 result with earnings per share of Rs1.87.

“Going forward, we expect the market to remain bullish,” the analyst said. “We recommend investors to avail any downside as a buying opportunity in steel, cement and refinery sectors.”

Overall trading volumes dropped to 469 million shares compared with Wednesday’s tally of 557.5 million. The value of shares traded during the day was Rs23.3 billion.

Shares of 416 companies were traded. At the end of the day, 286 stocks closed higher, 111 declined and 19 remained unchanged.

Telecard Limited was the volume leader with 36.2 million shares, gaining Re1 to close at Rs7.88. It was followed by Byco Petroleum with 34.6 million shares, gaining Rs0.35 to close at Rs10.39 and Unity Foods with 33.2 million shares, gaining Rs0.91 to close at Rs32.95.

Foreign institutional investors were net sellers of Rs560.2 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.