KARACHI, May 15: The stock market continued the winning streak on Wednesday with the KSE-100 index, posting gain of 92.07 points to settle at 20,566.69 points.
However, unlike the last many days, the index did not climb to the North without looking back. On Wednesday, it was more of a roller coaster ride with the index initially plunging by 128 points to its day’s low at 20,346.90 points. Yet, buying at dips by foreign investors soon pulled up the prices of some index heavy weight stocks. Also conspicuous by their presence on Wednesday was the heavy local purchases.
Foreign inflows into the equity market on Wednesday amounted to $8.75 million. They were supported by purchases by individuals of $4.79m worth stocks; companies buying $1.70m of shares. Among other local participants, banks sold shares valued at $5.76m and mutual funds sold huge $10.51m worth stocks.
Analysts said that the investors on Wednesday were spooked by the political situation in the city. Profit taking was witnessed at regular intervals as investors were in mood to trim their portfolio, until the dust settles.
Fahad M Ali at JS Global observed that the KSE-100 index went through a rollercoaster ride on Wednesday, finally surrendering to bulls and closing up 92 points. The index saw a positive opening, but failed to sustain it as aggressive profit taking was witnessed by local institutions. However, by midday, the KSE-100 index recovered from a low of 20,348 as the selling was countered by positive interest from the foreign side. Healthy volumes were observed, where accumulation was seen in stocks with high dividend yields and cheap multiples. E&P, OMC’s, Power and Banking sectors were in the limelight as market participants believe that the first item on the agenda of the government would be to address the circular debt issue which would result in better cash flows for some companies.
Among the 389 stocks that came up for trading on Wednesday, 196 were plus signs, 180 minus while 13 remained unchanged.
Volume of business was heavily up to 419m shares, from 299m shares traded the previous day. Trading value also jumped by Rs2.361 billion to Rs12.119bn, from a day ago trading value at Rs9.758bn. Market capitalisation saw decrease of Rs6bn to Rs4.994m.
Among the 10-most active stocks, Bank of Punjab was in the lead with 35m shares traded up by 49 paisa to Rs11.80 followed by KESC higher by 80 paisa to Rs6.26 on 27m shares; Japan Power at upper lock with gain of Re1 to Rs3.02 on 25m shares; Southern Electric also hitting upper circuit higher by Re 1 to Rs2.57 on 25m shares; Pakgen Power adding 60 paisa to rs20.14 on 23m shares; Fauji Cement up 13 paisa to Rs10.53 on 21m shares; Byco Petroleum gaining 45 paisa to Rs10.99 on 15m shares; Bankislami Pakistan up 9 paisa to Rs6.88 on 13m shares; PTCL down 34 paisa to Rs19.41 on 12m shares and TRG Pakistan up 2 paisa to Rs9.53 on 11m shares.