The strong momentum has carried the KSE-100 Index tantalisingly close to the 36,000-point level with oil, banking and cement stocks leading the charge.
At close on Thursday, the PSX benchmark KSE-100 index recorded a rise of 1.77% or 623.91 points to end at 35941.47. It ended positive for the third successive day, gaining close to 1,374 points during the time.
Elixir Securities analyst Ali Raza said the bulls continued to hold sway over emerging markets upgrade excitement as Pakistan equities staged another strong run. “The index finished 1.8% up and closed just a stone’s throw away from 36,000,” said Raza.
“Market opened gap up, carrying momentum from the previous day and blue-chip stocks that are top contender for inclusion into MSCI EM index led the most gains.
“Investors took comfort from large net foreign inflow and increased participation while rebalancing by local capital protected funds also supported the upward ride.
“Consequently, KSE-100 index gained steadily throughout the day and settled near its intra-day high with most contribution to index points coming from Habib Bank (HBL,+3.6% ), followed by Oil & Gas Dev Co (OGDC, +5%) , Lucky Cements (+4.7% ), MCB Bank (MCB +3%) and Engro Corp (ENGRO,+2.1% ).”
Meanwhile, JS Global analyst Ahmed Saeed Khan said optimism continued on the back of expectation of PSX’s inclusion in MSCI emerging markets index.
“OGDC (+4.95%), UBL (+1.28%) and MCB (+3.06%) were the main movers as they are amongst the most likely companies that will be part of the MSCI EM Index if the reclassification happens.
“Interest was seen in the oil and gas sector as global crude oil prices recovered near 2%, top performers of the aforementioned sectors were Mari (+5.00%) and Pakistan Oilfields (+4.16%).
“Cement sector rallied after APCMA released cement dispatch numbers for April that clocked in about 7.8% YoY higher – star performer of the sector was LUCK.” Trade volumes fell to 250 million shares compared with Wednesday’s tally of 279 million.
Shares of 378 companies were traded. At the end of the day, 194 stocks closed higher, 157 declined while 27 remained unchanged. The value of shares traded during the day was Rs15.7 billion.
Pakistan Telecommunication Company Limited (PTCL) XD was the volume leader with 17.2 million shares, gaining Rs0.57 to finish at Rs15.47. It was followed by Sui North Gas Limited with 16.6 million shares, gaining Rs0.21 to close at Rs34.46 and Pak Elektron with 15 million shares, gaining Rs1.52 to close at Rs64.24.
Foreign institutional investors were net buyers of Rs461 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Read : KSE-100 nose-dives by 500 points within an hour of session start
’s possible reclassification to the emerging market status was more than enough to make investors swing into action){kind=link}