KARACHI: Pakistan equities closed Tuesday higher as institutional cherry-picking helped KSE 100 index to surge by as much as 2.5% and settle over 45,600 level amid across-the-board buying. The benchmark index gained 1,113 points to close at 45,636 points. KSE 100 remained upbeat today as media coverage of the second day of court proceedings indicated that the odds of the incumbent Prime Minister being ousted in a hasty fashion were slimming down. The market was further spurred by anecdotal reports suggesting that a petition seeking disqualification of Punjab Province Chief Minister (PM’s brother) was also dismissed. The local equity market on the back of political uncertainty has come off by 5% during the current month of July and down 16% from peak seen on May 24, 2017. This is one of the steepest falls in last 12-years, analysts at Topline Securities commented. “In light of the above and most likely scenario of a legal battle, we anticipate KSE-100 index to move in the band of 43,000 to 46,000 till Dec 2017. This is based on our target PE range of 8.0-8.5x as against current PE of 8.3x (on 2018E earnings of Topline Universe) and last 10-year average PE of 8.5x. We had earlier forecasted Pakistan Market to end the year at 54,000 index level based on PE of 10.0x and have now de-rated it to 8.0-8.5x”, Topline Securities research said. On Tuesday stocks opened on a positive note yet traded lackluster in the early hours. However, activity in index names started to pick up as the day progressed on buying interest reportedly from local institutional investors. All major sectors including Financials, Cements, Oils and Fertilizers garnered interest, analysts at Elixir Securities said. Major positive contribution to benchmark Index came from United Bank, Lucky Cements, Oil & Gas Dev, Engro Corp and Hub Power. For Courts, it was again a busy day as it resumed hearing of First family’s case and news flow suggested that the outcome on ongoing proceedings will likely come sooner than expected. Top 10 KSE 100 point contributors were UBL (+3.4%), LUCK (+3.4%), OGDC (+3.4%), ENGRO (+3.3%), HUBC (+2.8%), PPL (+2.8%), SNGP (+4.9%), MCB (+2.3%), DAWH (+4.1%) & HBL (+0.9%); adding 495 points. While only 8 stocks closed lower eroding 13 points. On the sector front, Banks added 228 points, Cements 149 points, E&P’s 145 points, Fertilizer 142 points; while Chemical shed 2 points. Participation improved from previous day’s drought; volumes rose 110% to 158 million share, while traded value rose 115% to $85.6 million. Shares of 373 companies changed hands at the bourse out of which 307 advanced, 56 declined and 10 remained unchanged. TRG Pakistan with 11.2 million share traded topped the volume leaders list followed by K-Electric 8.9 million, Aisha Steel Mill 7.1 million, Engro Polymer 6.9 million, Sui South Gas 6.2 million, Askari Bank 5.1 million, B.O.Punjab 4.9 million, Dost Steels 4.1 million, Lotte Chemical 4 million, and Sui North Gas 4 million. “Despite today’s recovery”, market analysts said “we don’t expect Index to see any major upside in days ahead as ongoing political crisis will continue to keep gains in check”. Published in Daily Times, July 19th , 2017.