Market watch: Bulls take KSE-100 close to 46,000 mark


The Pakistan Stock Exchange staged a rebound on Tuesday and resumed its uptrend owing to overall optimism on the back of a host of positive triggers. As a result, the KSE-100 index gained 317 points and closed near the 46,000-point mark.

Upbeat car sales data released on Monday, which showed a 15% jump in demand in December 2020 on a year-on-year basis, triggered a rally in auto sector stocks and most of them closed with gains.

Fuelling the rise, international oil prices spiked to 11-month highs during the day, which enhanced investors’ interest in local oil sector stocks and subsequently, both oil-related sectors received substantial investment.

Earlier, trading began on a positive note and the KSE-100 index remained on the upward trajectory throughout the session. A buying spree, emerging in final hours, elevated the gains.

At close, the benchmark KSE-100 index recorded an increase of 316.62 points, or 0.69%, to settle at 45,922.04 points.

Arif Habib Limited, in its report, stated that the market rebounded with an increase of 408 points during the session. It closed up by 317 points.

Though the day began on a slow and cautious note after Monday’s profit-booking, a bounce-back in the banking sector as well as absence of selling in the exploration and production sector helped the index stabilise near 46,000 points.

International crude oil prices traded in the positive zone, which helped exploration and production companies’ stocks to recover from the previous day’s closing levels.

K-Electric recorded large trading volumes in anticipation of a deal after the resumption of International Monetary Fund (IMF) loan programme, as highlighted by State Bank of Pakistan Governor Reza Baqir on Monday.

The cement sector largely traded range bound but contributed positively to the index, the report said.

JS Global analyst Danish Ladhani said the benchmark KSE-100 index closed positive at 45,922 (up 317 points) after reaching a high of +408 points.

Activity was mainly noted in second and third-tier stocks where K-Electric (+12.2%), Hum Network (+10.1%), Unity Foods (+7.1%), Pakistan International Bulk Terminal (+2%), Silkbank (+1.6%), TRG Pakistan (+6.5%) and Byco (+0.5%) were volume leaders, contributing a cumulative 448 million shares.

Moreover, activity was seen in the automobile sector on 18% year-on-year rise in car sales in first half of the current fiscal year.

In the financial sector, HBL (+1.5%), Bank Alfalah (+0.4%) and MCB (+0.6%) closed in the positive zone. Oil and Gas Development Company (+1.8%), Pakistan Oilfields (+0.7%) and Pakistan Petroleum (+1.7%) remained in the green in the exploration and production sector.

“Moving forward, we recommend investors to see any upside opportunity to sell stocks,” the analyst said.

Overall, trading volumes soared to 825.9 million shares compared with Monday’s tally of 588 million. The value of shares traded during the day was Rs21.1 billion.

Shares of 414 companies were traded. At the end of the day, 272 stocks closed higher, 124 declined and 18 remained unchanged.

K-Electric was the volume leader with 250.2 million shares, gaining Rs0.49 to close at Rs4.50. It was followed by Hum Network with 68.5 million shares, gaining Rs0.75 to close at Rs8.18 and Unity Foods with 29.8 million shares, gaining Rs2.16 to close at Rs32.76.

Foreign institutional investors were net buyers of Rs11.2 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.