Such Tv Arabic
25 July 2017 Last updated 20 minutes ago

PSX benchmark index breaches 39k barrier, closes at all-time high

PSX benchmark index breaches 39k barrier, closes at all-time high File Photo

The benchmark-100 index rallied to close at its new all-time high above 39,000, helped by broad-based gains in line with excitement in regional markets.

At close, the Pakistan Stock Exchange’s (PSX) benchmark index registered an increase of 1.73% or 663.66 points to end at 39,031.62.

Elixir Securities, in its report, said institutional flows; both foreign and local, helped stocks carry Monday’s momentum while no serious intra-day profit taking was seen to hurt the trajectory.

“KSE100 index also saw a spike in trading volumes as nearly 180 million shares exchanged hands, up 62% vs Monday and most since mid-June.”

“Major sectors that contributed most to day’s gains were Exploration and Production (E&Ps); Pakistan Petroleum (PPL PA +5%), Oil & Gas Development  Company (OGDC PA +2.7%) and Pakistan Oilfields (POL PA +4.5%), Financials; Habib Bank Limited (HBL PA +2.2%), United Bank Limited (UBL PA +2%) and Muslim Commercial Bank (MCB PA +2.2%), Cements;  Lucky Cements (LUCK PA +2.7%), Fauji Cement (FCCL +3.7%) and Pioneer Cement (PIOC PA +4.8%) and Power; (Hub Power HUBC PA +2.6%).

“On the other hand, small and midcaps occupied top slots on volumes table as retail investors understandably jumped on the bandwagon,” said the report.

“We expect a volatile market as benchmark inches closer to the much hyped 40,000 level, however, we do not rule out jitters along with politics possible dampening the mood with flows countering any serious swing in the opposite direction,” remarked Elixir Securities analyst Ali Raza.

Meanwhile, JS Global analyst Arhum Ghous said market extended its previous day gain, following regional and global market trend and gained 664 points to close at its all-time high.

“Cement sector continued to garner investor interest on the back of strong growth in cement sales for the month of June 2016. Major gainers of the aforementioned sector were PIOC (+4.8%) and FCCL (+3.7%).”

“Investor interest was also seen in automobile sector, as Yen continued to lose value in the currency market. Major gainers of the aforementioned sector were Indus Motors (INDU +2.7%) and Atlas Honda (HCAR +1.8%).

“Kot Addu Power Company (KAPCO +1.2%) continued its upward trajectory on the back of news that board of the Privatization Commission (PC), on Monday, approved to offload government’s remaining stake of 40.25% in KAPCO by March 2017.”

“UBL (+2.0%), in the banking sector, gained as JCR-VIS upgraded UBL ratings to AAA/A-1+ from AA+/A-1+ previously.”

“Moving forward, we expect the market to continue its bullish momentum and advise accumulation into dips,” said Ghous.

Trade volumes increased to 248 million shares compared with Monday’s tally of 160 million.

Shares of 353 companies were traded. At the end of the day, 231 stocks closed higher, 105 declined while 17 remained unchanged. The value of shares traded during the day was Rs18.5 billion.

K-Electric Limited was the volume leader with 39.2 million shares, gaining Rs0.19 to finish at Rs8.28. It was followed by Sui Northern Gas Pipelines with 15.9 million shares, gaining Rs0.09 to finish at Rs39.94 and Dewan Cement with 14.1 million shares, gaining Rs0.41 to close at Rs15.87.

Foreign institutional investors were net buyers of Rs1.3 billion during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.