KARACHI: The stock market continued to be on the positive streak and finished last trading day of the week on a positive note.
The market witnessed directionless trading in early hours, however, when it resumed business after midday break, the index shot up. Investors bought stocks at attractive valuations, taking the benchmark index above 42,000-point barrier.
At close, the benchmark KSE 100-share Index registered an increase of 529.82 points or 1.27% to finish at 42,087.89 points.
Elixir Securities, in its report, stated that Pakistan equities stood strong as the KSE-100 index added to Thursday’s gains to close above 42,000, up 1.2%.
“Activity in the wider market remained upbeat as recent progress and some clarity on legal matters faced by former prime minister Nawaz Sharif as well as expectations of a relief package for the stock market helped rebuild investors’ confidence,” stated Elixir.
Market watch: Stock market blossoms on positive investor sentiment
Although the morning session saw somewhat limited activity and range-bound trading where most volumes went to small and mid-cap plays, from the onset of afternoon session, the KSE-100 saw a sharp climb upwards, helped by gains in blue chips across major sectors on reported local buying.
On the results front, Habib Bank (HBL, +1.3%) recorded a loss in the Jul-Sep quarter as the result was largely in line with market expectations post-fine on the bank’s New York branch by the US regulator.
“We see the market inching up next week with sectors and stocks tracking institutional flows and earnings announcements. However, investors will remain sensitive to the data of foreigners’ trading as any large outflow at highs can halt the current momentum,” the report added.
JS Global analyst Maaz Mulla said investors showed bullish sentiment for most part of the day as the market hit an intra-day high of +598 points and closed at 42,088.
The positive sentiment could be attributed to attractive valuations of stocks on the KSE-100 index, he said.
Market watch: Late buying helps bourse recover from early blows
The banking sector gained as United Bank (+0.87%) and MCB Bank (+2.03%) closed positive. Fauji Fertilizer Company announced its results for 9M2017 where the company declared earnings per share of Rs4.66 and cash payout of Rs1.50 per share for the third quarter.
The exploration and production sector rose following a slight increase in crude oil prices in the global market. Pakistan Petroleum (+1.54%) and Oil and Gas Development Company (+1.18%) were major gainers of the sector.
“The market is expected to recover in coming days; we recommend investors to trade in main board stocks and take long-term positions in the same to benefit from undervalued stocks,” Mulla said.
Overall, trading volumes rose to 261 million shares compared with Thursday’s tally of 232 million.
Shares of 386 companies were traded. At the end of the day, 270 stocks closed higher, 99 declined while 17 remained unchanged. The value of shares traded during the day was Rs12.9 billion.
Engro Polymer was the volume leader with 20.7 million shares, losing Rs1.01 to close at Rs36.99. It was followed by Azgard Nine with 17.6 million shares, gaining Rs1 to close at Rs13.83 and TRG Pakistan with 15.9 million shares, gaining Rs1.67 to close at Rs36.39.
Foreign institutional investors were net sellers of Rs556.7 million during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.
The post Market watch: Positive streak continues as index rises past 42,000 appeared first on The Express Tribune.
Source: Tribune News | Market watch: Positive streak continues as index rises past 42,000
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