Banking sector helps market to end day in green

KSE-100 Index positive to volatile day closing higher by 153 points

Ghulam Raza Rajani

KARACHI: After witnessing a negative show the previous day market rebounded strongly. Market started the day on positive note as banking sector remained in public interest supporting initial market prosperity. Lack of interest from investors limited the overall positivity of market.
The benchmark KSE-100 index closed higher by 152.47 point to close at 41,279.30 points. KSE All Share Index increased by 50.20 to end at 29,603.15, KSE 30-Index improved by 144.68 points to conclude at 21,107.78, whereas KMI 30-Index down by 27.65 points to finish the day at 69,676.06 levels.
Ali Raza at Elixir Securities said Pakistan Equities closed little higher after seeing range bound trading amid lackluster participation as just under 100mn shares exchanged hands on benchmark KSE All Index. Cements and Oils closed mixed while Financials closed in green with Habib Bank HBL PA +5% leading gains in the sector as it closed third consecutive session at upper price limit after imposition of lower final penalty, churning near 2.7mn shares. MCB Bank MCB PA +2.4% too stood strong and contributed to gains while United Bank UBL PA -0.3% closed on a flattish note despite the bank denouncing recent false rumors of a possible penalty being imposed on the bank. In a dull market, most action was seen in small and mid cap plays with stocks to the likes of EPCL PA -4.5%, KEL PA +1.8% and JSCL PA +4.8% topping the volumes chart. With no immediate positive triggers in sight and earnings season nearing end, we see consolidation at current levels and Index oscillating in a range of 41,000 supports and 43,000 resistances in near term.
The advance to decline ratio in the broader market remained in favour of bears. Out of 371 scrips, 155 scrips advanced, 202 declined while the value of 14 scrips remained intact.
The ready market volume increased by 4.98 per cent to 99.68 million shares as compared to 94.95 million shares traded on last trading day.
Engro Polymer Limited topped the list of actives, lower by Rs 1.28 at Rs 27.34 on 9.43 million shares, followed by K-Electric Limited increased by Rs 0.11 at Rs 6.25 on 9.29 million shares and Jahangir Siddiqui Company Limited improved by Rs 1.05 at Rs 23.06 on 8.95 million shares.
Other actives were Bank of Punjab ascended by Rs 0.02 at Rs 9.93 on 7.51 million shares and Pakistan Elektron Limited enhanced by Rs 1.84 at Rs 73.15 on 4.23 million shares.
Shankar at Aba Ali Habib Securities said Bourse started the day with 139 points positive, supported mainly by HBL adding 122.97 points in the index. In the first half of the trading session, index was observed inching up to an intraday high of 41,411.18 levels but shortly witnessed a downfall marking an intraday low of 41,024.54 points. However, in last 30 minutes, index recovered loss of 78 points and managed to close at 41,279.30 points with a gain of 152.47 points. The top scrips responsible for bringing the index up included HBL (+ 5.0%), NESTLE (+ 5.0%), MCB (+ 2.84%), OGDC (+ 0.83%) and NBP (+ 5.0%) cumulatively contributing 232.74 points in the index. Sugar sector performed better as inter-ministerial body approved the exports of 1.5mn tons of sugar with the subsidy of PKR 10.70 per kg. JSML gained PKR 1.87 in its value followed by SHSML (PKR +1.83), SANSM (PKR +1.25) and HABSM (PKR +1.65). MTL closed red losing PKR 3.99 (-0.32%) in its value as company posted its 4QFY17 earnings reflecting YoY decrease of 4%.In today's session, a total of 339 scrips changed hands where 136 advanced, 189 declined and 14 remained unchanged. Market faced an unsatisfactory volume of 99.67mn shares marginally up by 5% as compared to 94.94mn shares in previous session however value was witnessed to be PKR 5.48bn marginally down by 0.4% as compared to PKR 5.5bn in last trading session. The overall market capitalization enhanced by Rs 14.67 billion to Rs 8.654 trillion against Rs 8.640 trillion observed on last trading day.
Nestle Pakistan Limited and Rafhan Maize Pakistan Limited remained the top gainer by Rs 511.07 and Rs 190.71 close at Rs 12,186.00 and Rs 7,260.71 respectively, while Bata Pakistan Limited and Pakistan Tobacco Company Limited were the major losers which lost Rs 131.45 and Rs 65.43 to close at Rs 2,860.00 and Rs 1,450.00 respectively.