Despite continuous foreign selling, Pakistan Stock Exchange Monday turned bullish and the benchmark KSE-100 index registered the highest-ever single day increase on the back of heavy buying mainly by institutions. The KSE-100 index increased by 1,565.63 points or 3.22 percent and closed at 50,120.93 points.
Foreign investors however remained net sellers of shares worth $8.3 million. Trading activity improved as daily trading volumes increased to 255.144 million shares as compared to 221.760 million shares traded Friday. The market capitalization increased by Rs 268 billion to Rs 9.964 trillion. Out of total 391 active scrips, 325 closed in positive, only 49 in negative while the value of 17 stocks remained unchanged.
Bank of Punjab (R) was the volume leader with 26.038 million shares. It gained Rs 0.27 to close at Rs 1.56 followed by Power Cement (R) that inched up by Rs 0.23 to close at Rs 2.32 with 19.780 million shares. K-Electric increased by Rs 0.33 to close at Rs 7.58 with 14.061 million shares.
Wyeth Pak and Unilever Foods were the top gainers with Rs 106.35 and Rs 100.00, respectively to close at Rs 2,233.50 and Rs 6,300.00. Rafhan Maize and Island Textile were the top losers with Rs 62.50 and Rs 47.14, respectively to close at Rs 7,100.00 and Rs 895.65.
Arhum Ghous at JS Global Capital said that the market recovered in Monday's session, closing at 50,121, up 1,565 points. All sectors contributed positive with commercial bank heavyweights cumulatively contributing 320 points to the KSE-100 index. HBL (up 4.15 percent), UBL (up 4.97 percent), MCB (up 2.60 percent) and NBP (up 4.25 percent) were the major contributors from the aforementioned sector. On the back of news of deferment of decrease of duty on imported cars stocks in Auto sector witnessed a rally where PSMC, INDU and HCAR closed on their respective upper circuits. The decrease in GST to 5.0 percent from 16.0 percent for construction industry in Punjab was also taken as a positive stimulus for Cement and Steel sector. DGKC (up 4.94 percent) in Cement sector closed close to its upper circuit while LUCK (up 3.47 percent), FCCL (up 4.41 percent), MLCF (up 4.96 percent) and PIOC (up 2.90 percent) also heavily contributed to the index.
An analyst at Topline Securities after last weeks abysmal performance, KSE-100 bounced back sharply gaining 1,566 points or 3.2 percent to close above the 50,000 level. Last few weeks sharp dip reopened attractive valuations, as evident by across the board buying activity with early reports suggesting strong institutional support. While the nature of this bounce may point to a relief rally or dead cat bounce, performance in subsequent sessions would be key to sustaining a reversal. Top 10 index point leaders were HBL (up 4.2 percent), UBL (up 5.0 percent), ENGRO (up 4.8 percent), LUCK (up 3.5 percent), PPL (up 3.4 percent), DGKC (up 4.9 percent), SNGP (up 5.0 percent), DAWH (up 4.9 percent), MCB (up 2.6 percent) and BAHL (up 5.0 percent), with combined contribution of 706 points. On the sector front, Banks added 419 points, followed by Cements (209 points), Fertilizer (177 points) and E&Ps (128 points). Sui Southern Gas (SSGC) reported better than expected FY16 result (LPS Rs 6.7), which led the stock to its upper limit (up 5.0 percent).
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