PSX 50k within reach

Pakistan Stock Exchange witnessed another bullish session Monday. The benchmark KSE-100 index closed at highest-ever level of 49,876.18 points with a healthy increase of 511.35 points. The market opened on a positive note and the index hit 49,938.48 points intra-day high, however it could not sustain this level due to selling in select stocks before close.
Support was seen mainly from local investors and institutions. Foreign investors however remained net sellers of shares withdrawing $11.1 million from the bourse. Trading activity also improved significantly as daily trading volumes on the ready counter increased to 600.370 million shares as compared to 459.724 million shares traded inn previous session. The market capitalisation increased by Rs 84 billion to Rs 9.988 trillion. Out of total 439 active scrips, 277 closed in positive, 146 in negative while the value of 16 stocks remained unchanged.
K-Electric was the volume leader with 213.824 million shares. It gained Rs 0.60 to close at Rs 10.16 followed by Lotte Pakistan that increased by Rs 0.36 to close at Rs 9.13 with 27.248 million shares. Japan Power surged by Rs 0.81 to close at Rs 7.03 with 25.953 million shares.
Sapphire Textile and ICI Pakistan were the top gainers with Rs 61.50 and Rs 58.01, respectively to close at Rs 1,291.50 and Rs 1,218.27. Wyeth Pak and Sanofi-Aventis were the top losers with Rs 144.26 and Rs 55.96, respectively to close at Rs 4,595.73 and Rs 2,582.25.
Nabeel Haroon at JS Global Capital said that positivity prevailed in the market on the first trading session of the week as the index gained around 511 points to close at its ever high level of 49,876. Intraday rally was witnessed in the fertilizer sector on the back of the news that ECC in its meeting has endorsed continuation of fertilizer subsidy scheme for FY17 and has also permitted export of 0.3 million tons of urea fertilizer till April 28, 2017 without any subsidy. FATIMA (5.0 percent) and EFERT (2.05 percent) were among the major gainers of the aforementioned sector. DOL and SPL gained to close on their respective upper circuits as NTC through a notification has extended anti-dumping duties imposed on dumped imports of Hydrogen Peroxide. INIL, ISL and ASL closed on their respective upper caps for the third consecutive trading session on the back of the news that NTC has imposed definitive anti-dumping duties on dumped imports of cold rolled coils/sheets from China and Ukraine in the range of 13-19 percent. HCAR (+4.64 percent) in the automobile sector gained on the back of investor anticipation of a promising result for the company's December 2016 end quarter (3Q), which is due on January 25, 2017. KEL (+6.28 percent) was volume leader, as more than 213 million shares of the power company exchanged hands.
An analyst at Global Securities said that the local bourse gave another exhilarating session as index remained buoyant throughout the day and closed just below the landmark 50,000 level. Major support towards the index came from HUBC (+1.86 percent), KEL (+6.28 percent), UBL (+1.41 percent), BAFL (+4.98 percent) with total contribution of 127 points. Whereas, SHEL (-3.76 percent), PAKT (-5.2 percent), SNBL (-5.2 percent) remained the major laggard to drag index down by 23 points. KEL emerged as the volumes leader with total turnover of 213 million shares where investors likely put their bets on company's performance after acquisition by Chinese company. ASL (+5.0 percent), ISL (+5.0 percent) and INIL (+5.0 percent) closed with upper circuit as euphoria for antidumping duty on their products continued for 5th consecutive day.