KARACHI: A volatile ride ended in the positive for the benchmark-100 index that inched ever so close to the coveted 40,000-point barrier Thursday.
Rumours over a stake sale of K-Electric dominated the volumes chart as turnover in the scrip was 29% of the overall traded shares. However, the company released a statement after market hours, denying that an acquisition was being considered.
At close, the Pakistan Stock Exchange’s benchmark KSE-100 index registered an increase of 0.14% or 55.72 points to finish at 39,861.60.
Elixir Securities analyst Ali Raza said equities closed marginally positive after falling short of testing the 40k mark as sharp gains in select financials were countered by losses in oils and cements.
“After a modest positive open that was mainly led by cements and select banks barring MCB Bank (MCB, -0.1%), the wider market succumbed to profit-booking with index heavy exploration and production primarily derailing Wednesday’s bullish momentum and pushing benchmark index into red by midday.”
Interest in K-Electric (KEL,+2.2%) was distinct from the word go as stock opened gap up and climbed by as much as 5% intra-day on rumors of a bid price for stake-sale higher than earlier expectations, said Raza.
JS Global analyst Ahmed Saeed Khan said volatility prevailed as the index juggled between +106 and -63 points to finally close at 39,862.
“The oil sector remained under pressure throughout the day on the back of declining global crude oil prices; major laggards of the sector were OGDC (-0.73%) and Pakistan Oilfields Limited (-1.26%),” said Khan.
“Pakistan Petroleum Limited (+1.21%) rallied on the back of news that the company has commissioned a second gas processing facility in Gambat South,” Khan added.
“Rally in the cement sector continued on the back of surging local dispatch numbers; top performers of the sector were ACPL (+3.37%) and KOHC (+2.28%).
The automobile sector remained depressed throughout the day as sales for the month of July were disappointing, where Indus Motor (-2.15%) was the major laggard of the sector, said Khan.
Trade volumes rose to 385 million shares compared with Wednesday’s tally of 242 million.
Shares of 397 companies were traded. At the end of the day, 190 stocks closed higher, 186 declined while 21 remained unchanged. The value of shares traded during the day was Rs13.2 billion.
K-Electric was the volume leader with 110 million shares, gaining Rs0.19 to finish at Rs8.81. It was followed by Dewan Salman with 37.6 million shares, losing Rs0.19 to close at Rs3.18 and Dewan Cement with 21 million shares, gaining Rs0.72 to close at Rs17.26.
Foreign institutional investors were net buyers of Rs286 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Courtesy : Express Tribune