PSX remains choppy

Pakistan Stock Exchange opened on negative note and the benchmark KSE-100 index dropped to 48,478.63 points intra-day low, down 507 points due to investor concerns over terrorist attacks in different parts of the country. However, buying in various sectors at the fag end helped the index to recover its losses and to close in positive at 49,062.26 points with net gain of 80.61 points. Foreign investors remained net sellers of shares worth $1.7 million withdrawing their investment from the bourse.
Trading activity also remained thin as daily trading volumes declined to 266.165 million shares as compared to 379.901 million shares traded Wednesday. The market capitalisation increased by Rs 6 billion to Rs 9.705 trillion. Out of total 411 active scrips, 215 closed in negative, 179 in positive while the value of 17 stocks remained unchanged.
K-Electric was the volume leader with 19.619 million shares. It gained Rs 0.10 to close at Rs 9.75 followed by Aisha Steel Mill that increased by Rs 0.34 to close at Rs 26.13 with 19.409 million shares. Power Cement lost Rs 0.23 to close at Rs 19.43 with 15.271 million shares.
Service Industries and Island Textile were the top gainers with Rs 70.50 and Rs 53.81, respectively to close at Rs 1,480.50 and Rs 1,149.99. Wyeth Pak and Hinopak Motor were top losers with Rs 80.49 and Rs 65.91, respectively to close at Rs 4,116.33 and Rs 1,589.09. Nabeel Haroon at JS Global Capital said that pressure was witnessed at market opening as the index lost to make an intraday low of 507 points. This strain on market activity was on the back of prevailing political and law and order uncertainty. However, revive in market activity helped the index to close in the green zone (49,062 level). HMB in the banking sector gained to close on its upper circuit as the banking company declared its result for 2016. In its result, the bank posted EPS of Rs 5.85 along with a year-end dividend of Rs 3/share. OGDC (up 0.34 percent), POL (up 1.64 percent) and PPL (up 0.03 percent) in the E&P sector gained to close in the green zone as crude oil prices rebounded to trade above $54/bbl level. This surge in crude oil prices was on the back of surprise decline in US oil inventory level. Major contribution to the index came from ENGRO (up 2.32 percent), MCB (up 0.94 percent) and POL (up 1.64 percent). On the flip side HBL (down 0.75 percent), HUBC (down 1.15 percent) and FFC (down 0.43 percent) weighed down on the index.
An analyst at Topline Securities said that trading at the local bourse remained choppy; KSE-100 opened negative, down 500 points half an hour in the session with traders opting to close out positions while waiting for an update on the panama case. Further, a series of blasts further aggravated sentiments. However, the market recovered from its lows as the Panama case hearing concluded with the Justice stating that no short order would be issued on the matter and that the case would be looked at from all angles.