KARACHI: The stock market continued to advance in the green zone for the fourth straight session on Wednesday.
The KSE 100-share Index opened positive and jumped over 400 points in the first hour of trading. Later, it came down slightly, but managed to stage a remarkable recovery and rose past 46,900 points.
At close, the benchmark KSE 100-share Index recorded a rise of 415.61 points or 0.89% to finish the day at 46,949.04.
According to Elixir Securities, Pakistan equities advanced further on the back of institutional buying in index names.
The market opened positive and stocks carried the momentum that propelled the KSE-100 index towards 47,000 points.
“Financial stocks lent most of the support on institutional interest as Habib Bank (HBL, +2.9%) bounced back and led the gains after dropping over 8% in the previous two sessions on rumours about its New York branch being penalised on non-compliance with local regulations,” stated Elixir.
Cement stocks also garnered interest and traded higher with Lucky Cement (+2.8%) and DG Khan Cement (+1.6%) attracting most of the interest.
On the other hand, oil shares generally closed lower, tracking overnight dip in global crude barring Pakistan State Oil (PSO, +2.5%) as it remained in the limelight and added to the gains on prospects of becoming Shariah compliant.
“(We) expect the KSE-100 index to see resistance as it attempts to cross 47,000 while earnings and pay-outs will keep interest in the wider market alive and institutional flows will guide direction,” the report added.
JS Global analyst Maaz Mulla said the market sustained its bullish momentum and gained 416 points to close at 46,949. Buying interest was witnessed in oil and gas marketing companies sector as PSO, Sui Northern Gas Pipelines (+2.51%) and Sui Southern Gas Company (+1.64%) gained in the sector.
“PSO likely gained on prospects of becoming Shariah compliant after receipt of cash against PIBs (Pakistan Investment Bonds) and retirement of short-term debt,” said Mulla.
The steel sector continued its positive trend due to revised customs valuations on imported steel, favouring the local steel manufacturers. Aisha Steel Mills (+5%), International Steels (+3.89%) and Amreli Steels (+1.55%) were major gainers in the sector.
Oil and Gas Development Company (-0.57%), Pakistan Oilfields (-0.25%) and Pakistan Petroleum (-0.82%) from the exploration and production sector shed points as international oil prices decreased on account of increasing US inventory and high OPEC production.
HBL, MCB Bank (+1.60%) and United Bank (+1.33%) in the commercial banking sector cumulatively contributed +150 points to the KSE-100 index.
“Moving forward, we expect positivity to continue in the market and recommend investors to book profits on strength,” he added.
Overall, trading volumes rose to 367 million shares compared with Tuesday’s tally of 256 million.
Shares of 406 companies were traded. At the end of the day, 286 stocks closed higher, 101 declined while 19 remained unchanged. The value of shares traded during the day was Rs16.8 billion.
K-Electric Limited was the volume leader with 29.4 million shares, gaining Rs0.23 to close at Rs6.93. It was followed by The Bank of Punjab with 24 million shares, gaining Rs0.09 to close at Rs11.36 and TRG Pakistan with 23.3 million shares, gaining Rs2.13 to close at Rs45.85.
Foreign institutional investors were net sellers of Rs154 million during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.
The post Market watch: KSE-100 advances, ends few points shy of 47,000 appeared first on The Express Tribune.