Benchmark KSE 100-share index rises 279.04 points. PHOTO: AFP/FILE
Reports of institutional buying helped sentiment even though expectations were rife that the discount rate would remain at the same level.
At close on Monday, the benchmark 100-share index recorded a rise of 0.81% or 279.04 points to end at 34,726.51.
Elixir Securities analyst Faisal Bilwani said Pakistan equities closed the first day of the week positive as index-heavy oil stocks added gains on continued ascent in global crude. “Profit bookers were kept at bay on reports of institutional buying,” said Bilwani. “Oil and gas Development Corporation (OGDC, +4.9%) traded mostly at upper price limit, however, late selling generated volumes yet the stock managed a very respectable close.”
“Cements were lower on concerns of future outlook as Lucky Cement (LUCK ,+.1%) notified of mining approval, signalling expansion plans while Fauji Cement (FCCL,0.03%) ended little changed ahead of annual earnings announcement on Tuesday.
“Volumes and interest in wider market were primarily in small- and mid-caps as retail and prop book activity sees an uptick as concerns of aggressive foreign selling eases given calm in regional markets,” said Bilwani.
Meanwhile, JS Global analyst Arhum Ghous said the market witnessed a volatile session.
“Oil sector remained strong due to recovery in international oil prices over the weekend as Pakistan Oilfields Limited, Pakistan Petroleum Limited and OGDC closed up 2.8%, 3.2% and 4.9%, respectively.
“Banking sector remained under pressure as the policy rate is unlikely to rise even if consumer price index marches north,” said Ghous.
“The cement sector stayed in the weak zone after news of Lucky Cement signaling expansion plans as Maple Leaf Cement, DG Khan Cement and Cherat Cement closed down 2.2%, 0.5% and 1.6%, respectively.
Trade volumes rose to 358 million shares compared with Friday’s tally of 282 million shares.
Shares of 400 companies were traded on Monday. At the end of the day, 239 stocks closed higher, 134 declined and 27 remained unchanged. The value of shares traded during the day was Rs14.6 billion.
K-Electric was the volume leader with 41.3 million shares, gaining Rs0.30 to finish at Rs8.06. It was followed by Pace Pakistan with 23.2 million shares, gaining Rs0.37 to close at Rs7.75 and Pak Elektron with 20.1 million shares, losing Rs0.32 to close at Rs90.45.
Foreign institutional investors were net sellers of Rs1.8 billion worth of shares during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, September 1st, 2015.
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