PSX closes higher; E&P sector leads gains

PSX closes higher; E&P sector leads gains

KARACHI: Pakistan Stock Exchange (PSX) bucked the recent sideways trend and surged to close Wednesday 2.5 percent higher on buying primarily in blue-chips reportedly led by institutions despite recent concerns on macros and domestic politics.

Bulls ruled the local bourse Wednesday, taking the KSE-100-index up by 1,031 points to close at 42,310 points level where banking, cement and Exploration & Production (E&P) sectors led the optimism.

Activity in wider market also witnessed a spike with benchmark KSE All Shares Index recording volumes of over 170 million shares, up 75 percent from previous day and 40 percent from this month's average.

Index heavy oil stocks charged ahead in early trade with Oil & Gas Development Company (OGDC) gaining 5 percent briefly hitting upper price limit during last minutes of trading.

Moreover, banks witnessed considerable interest and helped benchmark cross 1000-point positive mark with National Bank Limited (NBP) gaining 3.8 percent testing upper price limit.

Other notable gainers included Engro Corporation with 4.5 percent gain, Pakistan State Oil (PSO) with 3.9 percent gain and Lucky Cement with 2.6 percent gain.

“We see current momentum to push market to test 43,000 however strong resistance and profit booking will likely keep upside in check as domestic politics and macro concerns remain a dampener”, said Elixir Research’s analyst.

Increase in the heavy weight stocks including Habib Bank Limited (HBL) gaining 4.42 percent, OGDC gaining 4.83 percent, United Bank Limited (UBL) gaining 2.90 percent, PSO gaining 3.86 percent and Engro gaining 4.51 percent caused the market a weight gain.

Volumes also increased to 174 million shares, up 74 percent day-on-day, with Azgard Nine Limited (ANL) losing 1.62 percent being the volume leader that contributed 13 percent to the total volumes.

Maple Leaf Cement posted financial results for FY17, reporting an EPS of Rs9.06 and final DPS of Rs1.75. Also, HASCOL with 4.92 percent gain closed near its upper circuit on the back of news regarding issuance of 20 percent rights shares at Rs165/share.

Pakistan Suzuki Motor Company (PSMC), going up by 2.60 percent, Millat Tractors Limited (MTL) going up by 1.15 percent and Al-Ghazi Tractors Limited (AGTL) going up by 1.80 percent gained on account of positive monthly sales numbers released by PAMA.

“We believe positivity in the market has been pulled by attractive multiples, where rebalancing of FTSE is also likely bringing in activity. However, on the bank of lack of substantial market triggers we recommend investors to book profits at these high levels, said JS Research’s analyst.