Foreign interest helps market to bounce back

KSE-100 Index sees bullish day closing higher by 945 points

KARACHI: After seeing negativity of almost 2,500 points in past two weeks market took a breather. An overall positive day was observed as more than 77 per cent of scrips ended in green zone. Recent meeting of brokers with government and approval to release funds for market played an important role in overall positivity. 
The benchmark KSE-100 index closed higher by 944.61 point to close at 40,791.39 points. KSE All Share Index increased by 561.72 to end at 29,258.94, KSE 30-Index improved by 505.37 points to conclude at 20,715.11, whereas KMI 30-Index up by 2,210.56 points to finish the day at 68,461.04 levels.
Ali Raza at Elixir Securities said Pakistan Equities managed a notable comeback after days of lull as market cheered and pinned hopes on a support package for equities by the government on request of brokers and investment community. KSE100 index ended the day with a healthy 2.4% gain however turnover did not match the excitement as only USD57 worth of shares changed hands on KSE All shares against the average of USD59mn last week, indicating cautious optimism by players. Despite reports of select foreign buying, selective interest was witnessed with recent laggard index names across Cements, Oils and Banks leading the contributors table while most volumes were in penny names on possible retail churning. For continuation and momentum to push market past resistances on the upside, positive news flow over support fund will have to flow through in days ahead given noise on political front and concerns on macros.
The advance to decline ratio in the broader market remained in favour of bulls. Out of 388 scrips, 296 scrips advanced, 79 declined while the value of 13 scrips remained intact.
The ready market volume decreased by 18.87 per cent to 124.80 million shares as compared to 153.83 million shares traded on last trading day.
Chakwal Spinning Mills Limited topped the list of actives, lower by Rs 0.94 at 
Rs 5.30 on 10.98 million shares, followed by Aisha Steel Mills Limited increased by Rs 0.98 at Rs 17.16 on 6.66 million shares and TRG Pakistan Limited improved by Rs 1.62 at Rs 34.12 on 5.56 million shares.
Other actives were Bank of Punjab ascended by 0.22 at Rs 8.67 on 5.02 million shares and K-Electric Limited enhanced by Rs 0.01 at Rs 6.17 on 4.91 million shares.
Adnan Sami Sheikh at Topline Securities said after a week's lull, Pakistan equities managed to stage a comeback as market participants cherished the announcement of a possible support package by Prime Minister (PM) for revival of stock market. According to news reports, a delegation of PSX officials, stock brokers and representatives from Mutual Fund industry met with PM over the weekend and recommended to inject Rs20bn worth of fund into PSX to reignite the market. Resultantly, the market gained 2.4%, up 945pts to close at 40,791 index level. However, trading activity failed to cope up with the revival euphoria as volumes fell 19% d/d while traded value was down 15%. Top 10 Index point contributors were OGDC (+3.4%), ENGRO (+4.7%), LUCK (+5%), POL (+3.3%), PPL (+2.3%), PSO (+4.1%), DAWH (+5%), SNGP (+5%), HBL (+1.3%) & MCB (+1.8%); adding 428pts while JDWS (-3.9%), KTML (-1.2%), OLPL (-2.1%), GADT (-1%), KAPCO (-0.7%), CPPL (+0.1%), POML (-0%), PMPK (-0%), PICT (-0%) & PAKT (-0%) withheld 11pts. Sector wise; E&P gained 158pts as Iraq-Kurdistan conflict and fears of new Iran sanctions drove up oil prices; Fresh buying was seen in the cement sector as chatter of a possible meeting among cement producers in upcoming days to keep firm pricing surfaces -  the sector gained 146pts. Banks and Fertilizer sectors cumulatively gained 252pts
The overall market capitalization enhanced by Rs 147.62 billion to Rs 8.464 trillion against Rs 8.316 trillion observed on last trading day.
Wyeth Pakistan Limited and Khyber Tobacco Company Limited the top gainer by Rs 60.02 and Rs 56.15 close at Rs 1,705.02 and Rs 1,179.23 respectively, while J. D. W. Sugar Limited and Faisal Spinning Mills Limited were the major losers which lost Rs 15.00 and Rs 14.23 to close at Rs 370.00 and Rs 270.67 respectively.