Market watch: Index breaks losing streak, gains 331 points

Benchmark KSE-100 index ends at 34,264.56

KARACHI: Stock market broke its five-day losing streak as bulls returned to the table. Positive news over World Bank’s latest report forecasting robust economic growth and Moody’s upgrading the banking system outlook to stable were a few triggers. Progression on the China Pakistan Economic Corridor (CPEC) front further gave the much needed trigger to push the bourse past the 34,000 level.

At close on Thursday, the Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.97% or 330.52 points to end at 34,264.56.



JS Global analyst Ovais Ahsan said the market bounced back strongly, welcoming a bevy of positive news flow. “Cement companies, which will be key beneficiaries of demand arising from CPEC, rallied on Thursday.

“Habib Bank (HBL +1.07%) and United Bank (UBL +0.94%) rallied on Moody’s upgrading its banking system outlook for Pakistan to stable.

“KSE managing director’s comment that Pakistan will join MSCI Emerging markets index in June 2016 also encouraged the bulls.”

Meanwhile, Elixir Securities report stated that stocks opened gap up and sustained gains as benchmark KSE-100 index increased steadily throughout the day. “Most sectors including the laggard cements and financials closed in green as investors, primarily local institutions, took advantage of the recent weakness and stepped in for value hunting.



“Autos also continued its upward drive on back of healthy production numbers. Highlight of Thursday was Engro Corp (ENGRO PA +3.29%) that covered its recent losses and contributed most points to the benchmark index.”

Trade volumes rose to 168 million shares compared with Wednesday’s tally of 152 million shares.

Shares of 380 companies were traded on Thursday. At the end of the day, 268 stocks closed higher, 92 declined while 20 remained unchanged. The value of shares traded during the day was Rs8.7 billion.

Sui Northern Gas (SNGP) was the volume leader with 10.6 million shares, gaining Rs0.30 to finish at Rs32.11. It was followed by Sui Southern Gas (SSGC) with 9.9 million shares, gaining Rs0.75 to close at Rs40.97 and Jahangir Siddiqui and Company (JSCL) with 9.6 million shares, gaining Rs0.99 to close at Rs21.31.

Foreign institutional investors were net sellers of Rs180 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, November 13^th, 2015.

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