Market watch: KSE-100 closes 2021 on optimistic note

Benchmark index adds 179.87 points to settle at 44,596.07

KARACHI:

The Pakistan Stock Exchange posted a decent rally on Friday as optimistic investors opted to make fresh investments on renewed hopes of revival of the International Monetary Fund (IMF) programme. Resultantly, the benchmark KSE-100 index managed to add 180 points on the final trading day of 2021 to end the year in the green.

Bulls and bears were seen locking horns throughout the day as the index trading in a narrow range. On one hand, market participants breathed a sigh of relief over approval of mini-budget from the cabinet while on the other, they anticipated further rise in inflation owing to imposition of fresh taxes.

Moreover, sharp appreciation of rupee against the US dollar further bolstered investors’ confidence and encouraged them to assume fresh positions.

The first session kicked off positively as investors resorted to cherry pick stocks while taking cues from positive macroeconomic developments. The buying activity made the index close the first session with 229 point increase. Buying pressure gripped the bourse in the second session and the market erased few of the gains by day end.

At close, the benchmark KSE-100 index recorded an increase of 179.87 points, or 0.4%, to settle at 44,596.07.

A report from Arif Habib Limited stated that the market continued to remain subdued even after approval of the mini-budget by the cabinet.

Market opened on the positive note due to a rally in cement stocks as international coal prices dropped for the second consecutive session.

In the second session, profit-taking was witnessed across the board. Activity continued to remain sideways as the market witnessed hefty volumes in the third tier stocks.

Sectors contributing to the performance included exploration and production (+73 points), commercial banks (+64 points), fertiliser (+50 points), cement (+36 points) and food and personal care (+20 points).

Overall trading volumes increased to 317.65 million shares compared with Thursday’s tally of 243.1 million. The value of shares traded during the day was Rs10.83 billion.

Shares of 361 companies were traded. At the end of the day, 215 stocks closed higher, 130 declined and 16 remained unchanged.

WorldCall Telecom was the volume leader with 41.97 million shares, gaining Rs0.01 to close at Rs2.08. It was followed by Cnergyico Pakistan with 39.83 million shares, gaining Rs0.15 to close at Rs6.81 and TRG Pakistan with 20.43 million shares, losing Rs7.11 to close at Rs117.9.

Foreign institutional investors were net sellers of Rs52.34 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.