KARACHI: The stock market achieved a turnaround on Wednesday from its downward trend, but trading activity remained lacklustre and was marred by a technical glitch.
In the morning, the trading began on a positive note and the index shot up in initial hours. However, volumes stood low as the session was cut short due to technical issues at the stock exchange.
At close, the benchmark KSE 100-share Index registered an increase of 303.64 points or 0.74% to finish at 41,595.32.
According to Elixir Securities, Pakistan equities closed positive on a day that saw shortened trading hours due to a technical issue.
“The market opened positive and edged up during the day with stocks across key sectors eking out small gains and supporting the index’s upward climb,” stated the report.
However, the activity showed a similar lacklustre trend of recent days with a little over 100 million shares changing hands on the KSE All-share Index. Small and mid-caps occupied top slots on the volumes board.
On the results front, earnings released by MCB Bank (+0.9%) came in a little higher than expectations.
“We see selective interest and range-bound trading for the remaining week. Investors will continue to closely monitor institutional flows to guess market direction while ongoing results season will keep their interest intact in select names,” Elixir added.
JS Global analyst Maaz Mulla said the market witnessed recovery in Wednesday’s session, which closed at 41,595.
“Positive sentiment can be attributed to attractive valuations of the KSE-100 index stocks,” said Mulla.
The banking sector stood positive where MCB Bank (+0.88%), United Bank (+0.34%) and National Bank (+0.47%) closed in the green.
MCB Bank and Meezan Bank announced their results for 3Q2017. MCB declared earnings per share of Rs16.15 and dividend per share of Rs4 whereas Meezan Bank (-0.06%) posted earnings per share of Rs4.46.
Aisha Steels (-1.05%) announced its 1QFY18 results where the company posted earnings per share of Rs0.37.
A rally was witnessed in the cement sector where heavyweights Lucky Cement (+2.46%), DG Khan Cement (+1.94%) and Cherat Cement (+3.53%) led the gains. Kohat Cement (+1.75%) declared its 1QFY18 results, posting earnings per share of Rs5.85.
“We expect the range-bound session to continue due to the rollover week. We recommend investors to trade in main board stocks and take long-term positions in order to benefit from the undervalued stocks,” Mulla added.
Overall, trading volumes fell to 102 million shares compared with Tuesday’s tally of 143 million.
Shares of 363 companies were traded. At the end of the day, 223 stocks closed higher, 117 declined while 23 remained unchanged. The value of shares traded during the day was Rs5.4 billion.
Pak Elektron was the volume leader with 15.1 million shares, gaining Rs0.82 to close at Rs71.20. It was followed by Aisha Steel Mills with 12.2 million shares, losing Rs0.21 to close at Rs19.82 and TRG Pakistan with 9.8 million shares, gaining Rs0.55 to close at Rs36.49
Foreign institutional investors were net sellers of Rs69.8 million during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.
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Source: Tribune News | Market watch: Stocks positive amid thin volumes in shortened session