KSE crashes all records, index hits past 41,000 | Pakistan Today

KSE crashes all records, index hits past 41,000

In the first trading session of October, KSE-100 share index rose to a new all-time high of 40,986.31 thus closing 444.50 points or 1.10 per cent higher than the previous day.

The market in its robust session on Monday, also achieved its highest-ever level of 41,131.35 around 2 PM earlier in the day.

Pakistan International Airline (PIA) Corporation stood out as the volume leader on Monday with as many as 43.8 million share changing hands. The national flag carrier finished the day at a per share price of Rs8.83 up Rs0.65 from last day closing price of Rs8.18.

It was followed by Bank of Punjab with 43.4 million shares traded, up Rs0.78 and Pace Pakistan Limited with 42.7 million shares traded, down Rs0.90.

Silk Bank Limited with 29.5 million shares traded was the fourth highest traded stock of the day up Rs0.10 from last day closing price of Rs1.82. The rally in the stock came amid market talks of Gourmet Group receiving approval from State Bank of Pakistan to invest Rs.45.3 billion in the bank for 75 per cent of its stake.

However, the bank’s Company Secretary Uzman Naveed Choudhry denied the news and called it a rumour. While talking to Pakistan Today, the company secretary said, “Gourmet Group has 12 per cent of shares of the Silk Bank which it purchased last year; Silk Bank is not interested in selling further shares to the Gourmet Group.’’

The index got support from Lucky Cement (up 5 per cent), United Bank Limited (up 2.45 per cent), Muslim Commercial Bank (up 1.81 per cent), ENGRO (up 1.73 per cent), DG Khan Cement (up 2.22 per cent) and Maple Leaf Cement Factory (up 4.88 per cent).

Fertilizer sector staged a comeback owing to expectations of robust off-take from mid-October onward. ENGRO Corp’s share price appreciated by 2.15 per cent, EFERT’s by 1.36 per cent and Fatima Fertilizer’s by 1.01 per cent, stated Intermarket Securities report.

Cements also witnessed a comeback amid news of better dispatches in the outgoing month along with reports of Rs110.45 billion release by the government under Public Sector Development Program (PSDP) 2016-17 for various developmental projects.

The news flow kept the sector buoyant with DG Khan Cement’s share price going up by 2.22 per cent, Lucky Cement’s 5 per cent and Maple Leaf Cement Factory’s 4.88 per cent thus enticing investor’s interest significantly.

‘’Reports of CPI clocking in at 3.88 per cent for September ’16 compared to 3.56 per cent in the previous month kept investor interest in Banks alive,’’ said the IMS report. ‘’Multi-utilities also clocked in significant turnover amid news flow of ECNEC approving Gwadar-Nawabshah gas pipeline and a terminal at Gwadar for handling imported LNG,’’ the report further informed.

On the contrary, downwards pressure came from Pakistan Services Limited (down 4.87 per cent), Hub Power Company Limited (down 0.85 per cent) and Honda Atlas Cars (down 2.18 per cent).

Market turnover clocked in at 175 million shares compared to 177 million shares in the previous session while daily traded value stood at $116.8 million against the $89.5 million of the last session – up 30.4 per cent.

In total, 568 million stocks worth Rs17.5 billion were traded on Monday. The share price of 292 stocks went up, that of 115 depreciated and 14 stocks’ prices remained unchanged till the end of the first working day of the month.

‘’Technically speaking, the 100-index extended gains from the previous session to breach past 41,000 in today’s session. Upside is likely to test rising trend-line resistance at 41,100, whereas immediate supports are at 40,192 and 39,947,’’ concluded the IMS research report.

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