Equities extend gains

Pakistan Stock Exchange witnessed another bullish trend on the back of healthy buying, mainly by local investors Tuesday. The benchmark KSE-100 index again crossed 45,000 psychological level. The index closed at 45,636.36 points with a healthy increase of 1113.15 points on Tuesday. Foreign investors remained net sellers of equities worth $1.2 million. Trading activity also improved as daily volumes on the ready counter increased by 158.319 million shares as compared to 75.287 million shares traded Monday.
The market capitalization increased by Rs 192 billion to Rs 9.326 trillion. Out of total 373 active scrips, 307 closed in positive, only 56 in negative while the value of 10 stocks remained unchanged. TRG Pak was the volume leader with 11.252 million shares. It increased by Rs 1.79 to close at Rs 37.79 followed by K-Electric that gained Rs 0.08 to close at Rs 6.69 with 8.908 million shares. Aisha Steel Mill closed at Rs 19.51, up Rs 0.59 with 7.197 million shares.
Philip Morris Pak and Sanofi-Aventis were the top gainers with Rs 125.85 and Rs 47.49, respectively to close at Rs 2,645.00 and Rs 1,767.49. Bata Pak and Colgate Palmolive were the top losers with Rs 73.00 and Rs 55.00, respectively to close at Rs 3,100.00 and Rs 2,300.00.
Maaz Mulla at JS Global Capital said that the market witnessed major recovery today, closing at 45,636 level, 1,113 points. Positive sentiment in the market can be attributed to attractive valuations of the KSE-100 index stocks. UBL (up 3.42 percent), ABL (up 2.31 percent) and MCB (up 2.33 percent) were the major gainers from the commercial bank sector, cumulatively contributing plus 113 points to the market index. SSGC (up 3.85 percent) from the gas utilities gained to close in the green zone on the back of the news that SSGC is set to complete the 24-inch diameter gas pipeline from Shikarpur to Jacobabad in Sindh by the end of next month. After weeks of speculation and volatility in the market resulting from events on the political front, market has reached to attractive levels. Many stocks offered at rates lower than their intrinsic values have encouraged investors into stock accumulation.
Ahsan Mehanti at Arif Habib Corporation said that the stocks closed bullish after SC observed PM disqualification or engaging accountability court after examining material to decide on JIT probe inviting speculation over the outcome of hearings. He said higher global crude prices, foreign inflows and speculations ahead of financial results played a catalytic role in the bullish close.