Bears retreated as the stock market advanced by a meagre 14 points in a see-saw session on Tuesday, in anticipation of the monetary policy. The KSE-100 index opened downward; however, mixed sentiments were seen in the early trading hours. The index dropped to an intra-day low of 32,604.64 points as selling pressure persisted.
The stock market gained a nominal 14 points on Tuesday amid high volume trading, analysts said. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 32,972 points as against 32,958 points showing an increase of 14 points.
Cement and E&P sector played a major role in setting the pace of market today, which oscillated between +135 points and -354 points. E&P scrips POL and PPL traded near lower circuits, whereas OGDC also saw significant selling pressure.
Similarly, O&GMCs saw key scrips under pressure, such as PSO and SNGP. MLCF and DGKC also traded near lower circuits, however, recovered later in the day’s trading. Cement sector led the volumes table with 27 million shares, followed by Power (22 million) and Technology (15 million).
Scrip wise activity shows KEL as volume leader with 20M shares, followed by MLCF (14 million) and TRG (13 million). Sectors contributing to the performance include banks (46 points), Cement (26 points), Fertilizer (18 points), Power Generation (4 points), and Transport (3 points). Volumes increased by from 138.7 million shares to 69.1 million shares.
Average traded value increased by merely 92 percent to reach US$ 28.3 million as against US$ 14.8 million. Stocks that contributed significantly to the volumes include KEL, MLCF, TRG, BOP and LOTCHEM, which formed 43 percent of total volumes.
Stocks that contributed positively include UBL (+24 points), LUCK (+24 points), HBL (+23 points), ENGRO (+17 points) and MCB (+15 points). Stocks that contributed negatively include POL (-29 points), PPL (-21 points), BAHL(-11 points), NML (-10 points) and ABOT (-9 points).
Volumes finally picked up as the market geared for a likely hike in the interest rate. In the later session, recovery was seen on back of strong valuations in selected auto, oil and banking scrips. Cement and E&P sector also helped the market surge upward.
Overall, trading volumes jumped 100% to 138.7 million shares compared with Monday’s tally of 69.2 million. The value of shares traded during the day was Rs4.5 billion. Shares of 316 companies were traded. At the end of the day, 148 stocks closed higher, 149 declined and 19 remained unchanged.
K-Electric was the volume leader with 20.3 million shares, losing Rs0.10 to close at Rs3.71 It was followed by Maple Leaf Cement with 14 million shares, gaining Rs0.05 to close at Rs21.07 and TRG Pakistan with 12.9 million shares, losing Rs0.07 to close at Rs14.29. At the end of trading, the benchmark KSE 100-share Index recorded an increase of 13.67 points, or 0.04%, to settle at 32,972.02.