Market watch: KSE-100 rises despite heavy foreign selling

Benchmark index gains 532.86 points to close at 44,899.60


Our Correspondent September 30, 2021
Shares of 557 companies were traded. At the end of the day, 385 stocks closed higher. PHOTO: REUTERS

KARACHI:

The Pakistan Stock Exchange bounced back on Thursday as the benchmark KSE-100 index surged 583 points, supported by late session buying that reversed direction of the market.

Investor interest improved as speculation was dismissed about a proposed bill in the US Senate, which sought to impose sanctions on the Taliban, which could possibly be extended to Pakistan.

Optimistic investor spirits drove the flow of funds to index-heavy sectors and all heavyweights closed with modest gains.

Earlier, trading began with a dip and the market reflected a rollercoaster ride in early hours owing to volatility. The oscillation settled down towards midday and a rally, emerging in final hours, lifted the market from the negative to the positive zone.

At close, the benchmark KSE-100 index recorded an increase of 532.86 points, or 1.2%, to settle at 44,899.60 points.

JS Global analyst Maaz Mulla said that the rollercoaster ride continued at the PSX, where the index touched intra-day high and low of 44,900 and 43,972 points respectively. It closed at 44,900 (+533 points).

The cement sector recovered where Fauji Cement (+5.6%), Cherat Cement (+4.9%), DG Khan Cement (+6%), Pioneer Cement (+5.2%) and Maple Leaf Cement (+4.5%) were the major movers.

In the exploration and production sector, Oil and Gas Development Company (+2.7%), Pakistan Oilfields (+2.2%) and Pakistan Petroleum (+3.3%) gained ground as crude oil prices edged higher in the international market.

Citi Pharma (+2.8%) in the pharma sector declared its FY21 result, where the company reported earnings per share (EPS) of Rs4.64 with cash payout of Rs1.5 per share along with 10% bonus.

 “Going forward, we recommend investors to adopt a buy-on-dip strategy in banking, steel and textile sectors,” the analyst said.

Overall trading volumes fell to 372.4 million shares compared with Wednesday’s tally of 468.8 million. The value of shares traded during the day was Rs13.8 billion.

Shares of 557 companies were traded. At the end of the day, 385 stocks closed higher, 157 declined and 15 remained unchanged.

K-Electric was the volume leader with 32.5 million shares, gaining Rs0.69 to close at Rs4. It was followed by Byco Petroleum with 29.8 million shares, gaining Rs0.45 to close at Rs8.18 and Azgard Nine with 20.8 million shares, gaining Rs1.17 to close at Rs20.15.

Foreign institutional investors were net sellers of Rs1.5 billion worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.

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