Last update: Fri, 21 Oct 2016 07pm
Home » Stocks & Bonds » Pakistan

Stocks snap losing streak

A bullish trend was witnessed on Pakistan Stock Exchange (PSX) Thursday due to healthy buying in almost all sectors, mainly by local investors. Across-the-board buying supported the benchmark KSE-100 index to gain 621.81 points and to close at the all-time high of 41,545.95 points. The market opened on a positive note and remained bullish throughout the day. The index hit 41,688.50 points intra-day high level, however could not sustain this level due to selling in some stocks in late hours.

Foreign investors, however, remained net sellers withdrawing $3.7 million from the market. Trading activity also improved as the daily trading volumes increased to 561.925 million shares as compared to 506.426 million shares traded Wednesday. The market capitalisation increased by Rs 109 billion to Rs 8.473 trillion. Out of the total 455 scrips, 325 closed in positive, 116 in negative while the value of 14 stocks remained unchanged. Bank of Punjab was the volume leader with 68.447 million shares. It rose by Rs 0.85 to close at Rs 18.30 followed by Dost Steel (R) that lost Rs 0.03 to close at Rs 3.88 with 49.252 million shares. Japan Power gained Rs 0.70 to close at Rs 6.96 with 42.877 million shares.

Nestle Pakistan and Rafhan Maize were the top gainers with Rs 200.00 and Rs 150.00, respectively to close at Rs 8,000.00 and Rs 7,850.00 while Bhanero Textile and Ferozsons Lab were the top losers with Rs 43.25 and Rs 39.64, respectively to close at Rs 821.75 and Rs 850.41.

An analyst at Global Securities said the market remained buoyant throughout the day, entering into the 41,500 level once again recovering by 622 points in one day compared to the 540 points lost in the previous three sessions due to political pressure. Upbeat sentiment in the market was likely owed to institutional buying on back of Rs 5.75 billion allocated by Sindh Pension Fund to some asset management companies for investment in the equity market. Banking sector demonstrated a strong comeback, supporting the KSE-100 index by 144 points, with HBL taking the lead on account of meeting higher earnings expectations. Bargain hunters took over the E&P sector, surging the KSE-100 index by 129 points amidst oil prices scenario.

Ahsan Mehanti at Arif Habib Securities said that the index closed at all time high level led by scrips across the board after government welcomed SC decision over Panama leaks serving notices to all parties easing uncertainty over political landscape. NEPRA approval on raise in power tariff supporting ailing SOEs, surge in global crude prices near to $51/barrel and strong results in the banking, oil sector played a catalyst role in record close ignoring ongoing foreign outflows at PSX.

Copyright Business Recorder, 2016