Pakistan Today

Bears hold bulls back as KSE-100 fails to close above 40,000pts

 

The Pakistan Stock Exchange (PSX) maintained its upward trend on Friday closing at 39.907 points owing to the positive sentiments in the market as the index rallied to make an intraday high of +221 points but came under selling pressure during the latter hours of the second trading session.

The market has touched 40,082 points in intraday trading. Total turnover of the market remained 277 million shares against the previous closing of 385 million shares. The trade value of the market also shrunk to Rs 12.081 billion from Rs 13.271 billion.

The Pakistan Stock Exchange (PSX) closed at a new all time high for the third consecutive day, mainly led by activity in the banking sector. The KSE-100 index gained 46 points (0.12 per cent) to close at 39,907 points.

E&P and the banking sector led the gains in the market. PPL (+2.38 per cent), POL (+0.72 per cent) and OGDC (+1.12 per cent) in the E&P sector gained, as crude oil prices comfortably traded above its previous day close for most part of the day. UBL (0.39 per cent) and MCB (+1.03 per cent) led the rally in the banking sector. ISL (+0.39 per cent) gained to close in the green zone as the company declared its financial result and earning per share (EPS) of Rs 2.71 with a full year dividend of Rs 1.25/share.

The overall sentiments remained positive at the bourse during the outgoing week; however, the benchmark KSE-100 Index failed to close above the psychological mark of 40,000. That said, the Index did manage to cross the barrier a few times during the last trading session, but closed at 39,907 (+1.3 per cent WoW), an analyst said.

Overall market activity remained healthy with major interest seen in sectors like, leisure goods (+5 per cent WoW), pharmaceuticals (+2.2 per cent WoW), autos (+2.3 per cent WoW) and gas water and utilities (+0.5 per cent WoW).

Of the Index heavyweights, cements (+2.3 per cent WoW on strong cement numbers recorded during July-16), banks (+2.5 per cent with value buyers jumping back in) and oil & gas (+3.1 per cent WoW on rebounding global crude prices) remained in the limelight.

Overall participation also recorded improvement with average volume and value traded increasing by 18 per cent WoW and 5 per cent WoW, respectively. Strong increase in volumes traded can partly be attributed to rumors circulating in the market regarding potential acquisition of K-Electric by Shanghai Electric and Engro Corporation.

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