RECORDER REPORT

KARACHI: A bullish trend continued on Pakistan Stock Exchange (PSX). The benchmark KSE-100 index, for the first time in its history, crossed 48,800 points psychological level on Tuesday.

The index closed at all-time high of 48,827.55 points with a healthy increase of 587.27 points.

Trading activity also improved as the daily trading volumes increased to 501.264 million shares as compared to 376.687 million shares traded Monday. The market capitalization increased by Rs 77 billion to Rs 9.794 trillion. Out of total 430 active scrips, 208 closed in positive, 199 in negative while the value of 23 stocks remained unchanged. Foreign investors emerged net buyers of shares worth $1.3 million.

Dost Steels was the volume leader with 61.765 million shares. It gained Rs 0.17 to close at Rs 13.29 followed by K-Electric that closed at Rs 9.52 without any change with 28.863 million shares. Engro Polymer increased by Rs 0.53 to close at Rs 18.99 with 21.257 million shares.

Unilever Foods and Rafhan Maize were the top gainers with Rs 150.00 and Rs 90.01, respectively to close at Rs 6,000.00 and Rs 8,590.00. Sanofi-Aventis and Colgate Palmolive were the top losers with Rs 71.03 and Rs 50.00, respectively to close at Rs 2,888.68 and Rs 1,750.00.

Nabeel Haroon at JS Global Capital said positivity prevailed in the market on the second trading session of 2017, as the index rallied to close at its new high level of 48,827. E&P sector closed in the green as the oil prices rose sharply, as traders watched development surrounding the landmark deal reached by the OPEC and several non-OPEC oil producers to reduce their output this year. OGDC, PPL and POL were the top performers of this sector and increased by 2.76 percent, 2.71 percent and 2.51 percent respectively. Mixed sentiments were witnessed in the banking sector as there was a decline in CPI number by 0.5 percent on month-on-month basis to 3.7 percent for the month of December 2016. HBL was major laggard of this sector and declined by 0.91 percent. Furthermore, investors’ interest was seen in the cement sector as the sector gained to close 2.6 percent higher than its previous trading session. DGKC and MLCF were major performers in this sector and increased by 4.50 percent and 4.15 percent respectively.

An analyst at Global Securities said that the local bourse witnessed another stellar rally with a surge of 588 points, quickly approaching towards the 49,000 level. Upside mainly came from the heavyweight sectors namely E&P and Cements, pitching in 123 points and 181 points, respectively. The former upheaved as a result of an increase in international oil prices while tremendous activity was witnessed in the latter as investors likely placed their bets on record cement off-take and strong earnings in light of various developmental projects. Additionally, fertilizer sector displayed an instrumental recovery as all scrips closed in green, with EFERT (5.0 percent) closing at the upper circuit. The sector garnered investors’ attention on anticipation of record high off-take during December 2016, supporting the sector’s profitability and providing relief to the industry’s supply glut scenario.