Last update: Thu, 08 Dec 2016 05am
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Bullish trend strengthens

A bull-run continued on Pakistan Stock Exchange (PSX) Wednesday. Supported by local investors and institutions, the benchmark KSE-100 index gained another 295.59 points and closed at a new high of 44,494.99 points. Buying was seen mainly by local investors and institutions; however foreign investors remained net sellers of shares withdrawing $1.2 million from the stock market.

Trading activity also improved as the daily trading volumes increased to 470.905 million shares as compared to 372.585 million shares traded Tuesday. The market capitalisation increased by Rs 40 billion to Rs 8.979 trillion. Out of total 420 active scrips, 235 closed in negative, 166 in positive while the value of 19 stocks remained unchanged.

Bank of Punjab was the volume leader with 79.721 million shares, however it lost Re 1.00 to close at Rs 17.76 followed by K-Electric that closed at Rs 9.42, up Re 0.01 with 43.178 million shares. Aisha Steel Mills gained Rs 0.32 to close at Rs 14.67 with 19.640 million shares.

Wyeth Pak and Sanofi-Aventis were the top gainers with Rs 227.60 and Rs 105.00, respectively to close at Rs 4793.00 and Rs 2205.00. Rafhan Maize and Sapphire Textile were top losers with Rs 78.45 and Rs 75.00, respectively to close at Rs 8000.00 and Rs 1425.00. An analyst at JS Global Capital said that volatility prevailed in the market as the index traded between intraday high of 346 points plus and intra-day low of 92 points minus to close at its new high of 44,495. This volatility was on the back of high profile case hearing in the Supreme Court. Cement sector continued its previous day momentum, as the sector gained to close 2.50 percent higher than its previous day close. This gain was on the back of cement dispatch numbers released by APCMA which showed a year-on-year growth of 11 percent for the month of November 2016. MLCF and Lucky were top performers of the cement sector. ICI gained as the company informed that it is considering potential acquisition in relation to its Life Science Business Portfolio. Indus Motor in automobile sector gained on the back of news that the automobile assembler has introduced new models for Hilux and Fortuner, respectively.

An analyst at Global Securities said that the local bourse witnessed another overwhelming day to add 296 points, up 0.67 percent to its 5 day rally of 1685 points and marking its spot at 44,495 level. Major support towards the index came from the LUCK, MCB, HBL, SEARL and ENGRO contributing a total of 195 points. ICI closed near its upper lock to support index by 11 points as euphoria over company''s decision to acquire life sciences portfolio continued for the second day. Whereas heavy profit seeking was seen in the E&P sector as OGDC, PPL and POL dragged the index by 63 points. MCB and NIB came to limelight once NIB announced the BoD approval for amalgamation within and into MCB with a swap ratio of 140 shares for one MCB share.

Copyright Business Recorder, 2016