KARACHI: After Monday’s bloodbath, stocks underwent a rollercoaster ride on Tuesday, eventually finishing positive and over the 48,000-point level.
The KSE-100 index opened sideways, but jumped over 800 points to hit an intra-day high of 48,513, after which it started to descend.
By mid-day, profit-taking wiped the day’s gains, dragging the index down by 560 points, with panic-selling continuing to take the KSE-100 lower. However, it managed to post a recovery by the time it closed.
At the end of trading, the benchmark KSE-100 index recorded a rise of 399.24 points or 0.84% to close at 48,071.04.
According to Elixir Securities, Pakistan equities broke the three-day losing streak to settle over 48,000 after witnessing a highly volatile trading session where benchmark KSE-100 Index traded in a wide band of over 1400 points.
“After a opening sideways, stocks bounced back sharply in early trading on thin volumes that led the benchmark Index revisiting the 48,500 level,” stated the report.
It was followed by profit-taking that not only completely wiped all the morning gains but also resulted in Index testing the 47,000 support, it added.
“Market, however, recovered in the final 90 minutes of trading where notable blue chips including Habib Bank (HBL PA +4.8%), Lucky Cements (LUCK PA +3.6%) and United Bank (UBL PA +3.5%) contributed to day’s gains with reports of MSCI-led buying doing rounds in the market.
“[We] expect volatile trading to continue with flows in Index names primarily guiding the market direction while news flow pertaining to Panama investigations against First family will be keeping participants on the lookout.”
JS Global analyst Arhum Ghous said the market remained volatile throughout the day making an intraday low of -572 points and high of +841 points to finally close at 48,071 level, 399 points above the last trading day.
Positivity in the market came at the eleventh hour as buyers jumped in to take to cherry pick value buys.
“Today’s major contribution to the index came from HBL (+4.77%), LUCK (+3.63%) and UBL (+3.49%) as they cumulatively contributed +312 points to the index. On the flipside, major laggards were TRG (-3.62%), POL (-1.43%) and THALL (-3.22%) as they cumulatively contributed -45 points to the index,” the analyst remarked.
“EPCL (+4.99%) closed at its upper circuit on account of anti-dumping duty imposed by the National Tariff Commission on PVC Resin Suspension Grade, in favour of the application made by EPCL.
“Commercial bank heavyweights cumulatively contributed (+235) points to the KSE-100 index. HBL (+4.77%) and UBL (+3.49%) remained the major gainers in the aforementioned sector.
“Moving forward, we expect volatility to persist in the market and recommend investors to stay cautious,” Ghous added.
Overall trading volumes rose to 317 million shares compared with Monday’s tally of 219 million.
Shares of 378 companies were traded. At the end of the day, 160 stocks closed higher and 202 declined while 16 remained unchanged. The value of shares traded during the day was Rs14.9 billion.
Power Cement (right shares) was the volume leader with 40.6 million shares, losing Rs0.20 to close at Rs0.53. It was followed by The Bank of Punjab (R) with 22.1 million shares, losing Rs0.10 to close at Rs0.57 and Engro Polymer with 19.3 million shares, gaining Rs1.76 to close at Rs37.02.
Foreign institutional investors were net buyers of Rs292 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, June 14th, 2017.
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