Market watch: Stocks extend gains on positive triggers

Benchmark KSE-100 index adds 255.87 points to settle at 43,975.69

KARACHI:

The Pakistan Stock Exchange extended the previous day’s gains on Wednesday, as a number of positive triggers instilled optimism among market players.

Bullish sentiment prevailed throughout the trading session as the benchmark KSE-100 index stayed in the positive territory and managed to add 256 points to close just below the 44,000-point level.

The easing global commodity prices following news of peace dialogue between Russia and Ukraine was cheered by local investors, who opted to take fresh positions across the board.

Moreover, a further decline in global coal prices lured market participants towards the cement sector where stocks were in the limelight throughout the trading session.

Earlier, the trading commenced on a positive note and the index climbed to an intra-day high of 44,281 points in the first half of the session.

Later, the index remained in the green territory and oscillated in a narrow range.

During the final hour, across-the-board buying was witnessed owing to positive developments, which aided the trading session to end in the green.

At close, the benchmark KSE-100 index recorded an increase of 255.87 points, or 0.59%, to settle at 43,975.69 points.

A report of Arif Habib Limited stated that a positive trading session was witnessed due to the decline in international commodity prices.

Cement sector stayed in the green zone following a major drop in international coal prices, it said.

“Main board activity remained dull as investors were cautious due to the prevailing political noise. In the last trading hour, across-the-board buying was observed,” the report said.

Sectors contributing to the performance included technology (+87.7 points), cement (+76.1 points), banks (+42.6 points), textile composite (+18.5 points) and power (+18.1 points).

Topline Securities, in its report, said that Pakistan equities “witnessed a green day, as the benchmark KSE-100 index opened on a positive note and remained in the green zone throughout the trading hours”.

It was due a couple of days delay announced by the opposition parties for their protest in Islamabad, easing global commodity prices and news flow regarding dialogue between Russian and Ukrainian officials, the report said.

Technology, cement and banking-sector stocks led the market, where Systems Limited, DG Khan Cement, Meezan Bank and United Bank added 131 points cumulatively.

On the flip side, Habib Bank Limited, Pakistan Tobacco Company and Indus Motor faced some profit-taking, as they lost 50 points collectively, Topline said.

JS Global analyst Mubashir Anis Naviwala said that bulls made a comeback on Wednesday.

WorldCall Telecom (-1.8%), Treet Corporation (+1%), TPL Properties (+3.8%), Agritech Limited (+4.8%) and Telecard Limited (-1.8%) cumulatively contributed 28% to the total volumes.

The cement sector performance was noteworthy because of declining coal prices, he said.

“Going forward, we expect range-bound activity in the market and recommend investors to avail any downside as an opportunity to buy in cement, banking and exploration and production sectors,” the analyst said.

Overall trading volumes rose to 236.5 million shares compared with Tuesday’s tally of 189 million. The value of shares traded during the day was Rs5.8 billion.

Shares of 354 companies were traded. At the end of the day, 215 stocks closed higher, 115 declined and 24 remained unchanged.

Flying Cement (R) was the volume leader with 22.3 million shares, losing Rs0.05 to close at Rs0.09. It was followed by WorldCall Telecom with 19.7 million shares, losing Rs0.03 to close at Rs1.65 and Treet Corporation with 15.2 million shares, gaining Rs0.3 to close at Rs31.29.

Foreign institutional investors were net sellers of Rs319.8 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.