Despite low volumes, the index continued its upward journey after a disappointing start to the week.
KARACHI: Amid interest in select stocks, a bullish momentum ensured the Karachi Stock Exchange (KSE)-100 Index ended higher to edge close to the 34,000-point barrier.
Despite low volumes, the index continued its upward journey after a disappointing start to the week. On Wednesday, support was witnessed in the oil and cement sectors, but absence of triggers and positive news meant activity was restricted with less than 200 million shares being traded.
At close on Wednesday, the Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 1.06% or 356.19 points to end at 33,830.36.
Elixir Securities analyst Faisal Bilwani Pakistan equities closed positive for the second consecutive session. “Stocks opened gap up continuing with Tuesday’s momentum while gains in regional markets supported the upward drive,” said Bilwani.
“Despite excitement in early trade, wider market plummeted to fill the gap in absence of support, news and triggers. Local institutions and value hunters took their sweet time and activity picked up mid-day as equities staged a strong comeback with pharma, oil and select banks pushing benchmark higher.
“Cements traded mixed while Maple Leaf Cements earnings announcement turned out to be a non-event for the sector. “We see gains to consolidate in the near term and range-bound trading in days ahead and expect benchmark to settle above 34,200 with financials and fertilisers are key buys.”
Meanwhile, JS Global analyst Ahmed Saeed Khan said bulls dominated Wednesday’s session.
“The oil sector rallied on the back of uptick in international crude oil prices,” said Khan. “Biggest gainers of the sector were Oil and Gas Development Company Limited (+3.10%), Pakistan Petroleum Limited (+2.87%) and Attock Refinery Limited (+2.59%). Cement sector rallied on over 10% year-on-year growth in August sales.
“After Tuesday’s recommendation by the regulator to the government for immediate implementation of compulsory group insurance, the sector remained upbeat where the most liquid stock of the sector Adamjee Insurance Company Limited and EFU General Insurance Limited closed +2.23% and +2.43%, respectively.
“Moving forward, we expect bullish momentum to continue during the last two sessions of the week. Cements and insurance would be the recommended sectors.”
Trade volumes fell to 195 million shares compared with Tuesday’s tally of 291 million shares.
Shares of 350 companies were traded on Wednesday. At the end of the day, 209 stocks closed higher, 123 declined while 18 remained unchanged. The value of shares traded during the day was Rs8.47 billion.
Dewan Cement Limited was the volume leader with 13.45 million shares, gaining Rs0.18 to finish at Rs18.06. It was followed by Dewan Motors Limited with 11.4 million shares, losing Rs0.52 to close at Rs11.90 and TRG Pakistan Limited (ex-rights issue) with 10.7 million shares, losing Rs1.63 to close at Rs34.23.
Foreign institutional investors were net buyers of Rs130 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, September 10th, 2015.
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