Pakistan Stock Exchange (PSX) Wednesday achieved another milestone as the benchmark KSE-100 index, for the first time in history, crossed 46,000 points psychological level to close at 46,185.27 points with healthy increase of 327.38 points. During the session, the index hit 46,271.10 points intra-day high, however it could not sustain this level due to selling in certain stocks at the fag end.
Support was seen mainly on the back of healthy buying by local investors and institutions. However, foreign investors remained net sellers of shares, withdrawing another $10.9 million from the bourse. Daily trading volumes stood at 360.776 million shares as compared to 383.046 million shares traded Tuesday. The market capitalisation surged by Rs 55 billion to Rs 9.269 trillion. Out of the total 412 active scrips, 226 closed in negative, 171 in positive while the value of 15 stocks remained unchanged. Dolman City REIT was the volume leader with 30.792 million shares. It gained Rs 0.05 to close at Rs 11.00 followed by TRG Pak that increased by Rs 2.15 to close at Rs 45.62 with 29.691 million shares. Bank of Punjab inched up by Rs 0.17 to close at Rs 17.04 with 17.158 million shares. Wyeth Pak and Philip Morris Pak were the top gainers with Rs 81.77 and Rs 73.79, respectively to close at Rs 4,784.10 and Rs 2,400.00. Indus Motor Co and Ismail Industries were the top losers with Rs 22.57 and Rs 18.98, respectively to close at Rs 1,587.28 and Rs 371.00.
An analyst at Global Securities said the local bourse opened on an optimistic note as the index surged by 189 points soon after the opening bell; however the index succumbed to selling pressure after finding a resistance at the psychological 46,000 points barrier. Major support towards the index came from E&P sector with total contribution of 181 points as crude oil prices touched its one year high after non Opec countries reached accord with Opec countries to cut oil production by more than 0.5mbpd. PPL (+5.0 percent) also closed with upper circuit as scrip caught investors'' attention once news of extension in Sui field surfaced the market. SNGP (+5.0 percent) closed with upper circuit as the company announced better than expected results for FY16 coupled with allocation of 83mmcfd gas from Nashpa field on its system. HBL (+1.82 percent) and HUBC (+2.45 percent) also supported the index by 98 points over possible foreign buying in former whereas the latter likely surged on the back of receiving LOS for one of its subsidiary.
Nabeel Haroon at JS Global Capital said that the volatility prevailed in the market as the index traded between an intra-day high of +410 points and an intra-day low of -255 points to finally close at it new high of 46,185, up 327 points. E&P sector was the major index mover, as it extended its previous day gains to close 2.8 percent higher. This gain was on the back of crude oil prices. Mixed activity was seen in the Auto sector as numbers released by PAMA indicated a 6 percent year-on-year decline for the month of November 2016. Intra-day rally was seen in the cement sector as the sector gained to close 0.7 percent higher than the previous day close.