Market watch: KSE-100 increases 719 points, but falls short of 45,000

KARACHI: The KSE-100 continued to move upwards, registering an increase of 719 points on Monday to finish positive for the fifth successive session.

Healthy activity was witnessed in the banking, cement and auto sectors with volumes surging from the previous day’s level.

At close, the KSE-100 Index ended with an increase of 718.86 points or 1.63% to finish at 44,897.69 points.

Elixir Securities’ analyst Jawwad Abubakr said equities carried the momentum from last week and closed with strong gains as the benchmark KSE-100 Index surged to finish near 45,000 level.

“The market displayed relative strength from the word go as cements along with select notable bluechips from oils, fertilisers and pharmaceuticals led the advance on strong institutional flows,” stated Abubakr.

“DG Khan Cement (DGKC PA +5%) and Maple Leaf Cement (MLCF PA +5%) were the highlights that closed at their respective upper price limits.

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“On the leader board, Hub Power (HUBC PA +4%) contributed most points to the KSE-100 Index. Pakistan State Oil (PSO PA +3.9%) landed itself among the top five movers with investors likely betting on inventory gains in the upcoming quarterly earnings.

“Any further gains from the current level would require strong liquidity to sustain the ongoing bullish momentum. Direction of foreigners’ flows will be very critical. We advise letting the market to cool-off a bit and suggest profit-taking,” he added.

JS Global analyst Maaz Mulla said major contribution to the index came from HUBC (+3.94%), LUCK (+3.01%), ENGRO (+1.86%), DGKC (+5%) and PSO (+3.53%), cumulatively contributing 206 points to the index.

On the news front, the country’s current account deficit sharply increased by 59% during the first half of this fiscal year.

“A rally was seen in the cement sector as investors opted to cherry-pick stocks such as LUCK (+3.01%), DGKC (+5%), CHCC (+5%) and PIOC (+5%) on the back of news that All Pakistan Cement Manufacturers Association (APCMA) has urged the government to support the industry with application of anti-dumping duty on Iranian cement and reduction of taxes,” he commented.

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Steel sector continued to perform as MUGHAL (+5%), CSAP (+2.60%) and INIL (+1.80%) increased to close in the green zone on the back of speculation of increase in steel prices. E&P sector closed higher than its previous day’s close, where OGDC (+1.45%) and POL (+0.26%) increased the most.

“Moving forward, we expect the market to maintain its positive trend, however, we recommend investors to accumulate valued and growth stocks on dips,” Mulla added.

Overall, trading volume increased to 294 million shares, compared with Friday’s tally of 209 million.

Shares of 396 companies were traded. At the end of the day, 295 stocks closed higher, 87 declined while 14 remained unchanged. The value of shares traded during the day was Rs13.3 billion.

Amtex Limited was the volume leader with 19.7 million shares, gaining Rs0.58 to close at Rs1.88. It was followed by Power Cement with 16 million shares, gaining Rs0.76 to close at Rs10.07 and TRG Pakistan with 15.4 million shares, gaining Rs1.54 to close at Rs34.36.

Foreign institutional investors were net sellers of Rs380 million during the trading session, according to data compiled by the National Clearing Company of Pakistan.

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