PSX hits record high on institutional support

Pakistan Stocks Exchange rose to a record high close on Wednesday with local institutions snapping up shares on support from large-cap cement and blue-chip stocks, dealers said.

Analyst Ahsan Mehanti at Arif Habib Corp said oil, cement and auto stocks are starting to have a positive impact on the market overall on upbeat sales in July 2016. However, concerns including foreign outflows, high circular debt and souring Pakistan-India relations dented buying appetite. “Expectations ahead of major earning announcements due later this week played a catalyst role in the bullish close,” Mehanti said.

The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index gained 0.36 percent or 142.17 points to close at 39,805.88 points. The highest index of the day remained at 39,862.59 points while the lowest level of the day was recorded at 39,663.71 points.  KSE-30 Index also rose 0.36 percent or 81.24 points to close at 22,849.55 points.

Turnover rose by 21 million shares to 242.15 million shares against 221.18 million shares, trading value increased to Rs12.32 billion against Rs11.53 billion, while market capital expanded to Rs7.93 trillion from Rs7.91 trillion. Of a total of 394 companies’ active in the session, 217 recorded in green, 152 in red while 25 remained unchanged.

Faisal Bilwani, analyst at the Elixir Securities, said equities closed the day at a new all-time high on gains in pharmas, cements and select financials stocks. “Market carried momentum from the previous day and opened positive with lagging cements leading early gains on news of better than expected domestic sales in the month of July,” Bilwani said.

Lucky Cements (up 2.7 percent) added most to the KSE-100 and the sector closed up 0.7 percent as off-take excitement overshadowed announcement of capacity expansion by Power Cement (up 1.9 percent). “It is worth noting that the expansion notifications have not brought any significant negativity as investors and industry remains confident of growth in the local demand,” Bilwani said.

Oils also helped early gains, however most stocks witnessed intraday profit taking. Engro Fertilizers (up 0.8 percent) closed marginally up after announcing a surprise cash payout along with half yearly earnings.

Highest increase was recorded in shares of Unilever Foods, which rose by Rs135.99 to Rs5,344 per share, followed by Abbott Lab that increased by Rs38.57 to Rs828.57 per share. Major decline was noted in shares of Rafhan Maize, which fell by Rs139.93 to Rs7,311 per share, followed by Nestle Pak that decreased by Rs80 to Rs7,420 per share.

Significant turnover was recorded in stocks of Dewan Salman, Engro Fertililzers, NIB Bank Limited, K-Electric Ltd, Sui Southern Gas Company Limited, Dewan Motors, Nimir Resins (Right), Pak Elektron, JS Bank Ltd and Hi-Tech Lubricants. 

Dewan Salman remained the volume leader with 27.10 million shares with an increase of 59 paisas to Rs3.37 per share. It was followed by Engro Fertilizers with 18.28 million shares with an increase of 51 paisas to Rs68.60 per share.

Shares’ turnover in the future contracts decreased to 25.87 million shares from 28.85 million shares traded in the previous session.