PSX gains 35 points amid low volumes

Benchmark index increases 0.1% to settle at 33,875.40

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ISLAMABAD/KARACHI/LAHORE

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) gained 35 points on Thursday to close at 33,875 points as against previous day’s 33,840 points. KSE-100 index has been on a losing streak with continuous slide in both volume and index level. The stock market experienced a lacklustre session due to the absence of positive triggers and thin participation of investors.

Overall, trading volumes decreased to 39.5 million shares compared with Wednesday’s tally of 40.6 million. The value of shares traded during the day was Rs1.4 billion. Shares of 305 companies were traded. At the end of the day, 114 stocks closed higher, 168 declined and 23 remained unchanged.

Dost Steels was the volume leader with 4.4 million shares, gaining Rs0.27 to close at Rs4.11. It was followed by Maple Leaf Cement with 2.7 million shares, losing Rs0.09 to close at Rs23.26 and Hub Power Company with 2.2 million shares, gaining Rs0.19 to close at Rs78.24. Foreign institutional investors were net buyers of Rs276.2 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan. At the end of trading, the benchmark KSE 100-share Index recorded an increase of 35.35 points, or 0.1%, to settle at 33,875.40.

The inflow of $21.84 billion in remittances in FY19, reports of surging bank deposits and higher banking spreads, hike in local auto prices and higher global crude oil prices played the role of catalysts in positive close of the market. Earlier, trading began on a positive note, however, slim volumes and sombre mood of investors restricted the market from achieving lofty gains. The index remained in the red zone for a long time but late session buying helped it recover and end in the positive zone.

Yesterday, the volumes reached an 8-yr low of 40 million, and today marked yet another low of 39.5 million shares. Cement sector led the volumes table with 5.4 million, followed by Engineering (5.1 million) and Chemical (3.7 million). Scrip wise activity shows DSL ranking top again with 4.4 million, followed by MLCF (2.7 million) and HUBC (2.2 million).

Recent ouster of HUBC from Islamic indices is followed by an increase in trading volumes of HUBC. Market on close showed improvement in points table that resulted in index closing with +35 points. Sectors contributing to the performance include Banks (+42 points), Fertilizer (+15 points), O&GMC (+10 points), E&P (+9 points), Sugar (+2ts).

Volumes decreased by 3 percent DoD to reach 39.5 million as against 40.6 million. Average traded value also decreased by 12.2 percent to reach US$ 9.1 million as against US$ 10.3 million. Stocks that contributed significantly to the volumes include DSL, MLCF, HUBC, LOTCHEM and TPL, which formed 34 percent of total volumes.

Stocks that contributed positively include HBL (+33 points), ENGRO (+16 points), UBL (+14 points), POL (+9 points) and MCB (+8 points). Stocks that contributed negatively include MARI (-7 points), NATF (-5 points), MEBL (-5 points), INDU (-4 points) and HMB (-4 points).

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