Daily Times

KARACHI: Bulls at Pakistan stock market continued to celebrate Panamagate verdict into new trading week on Monday resulting the benchmark KSE 100 index moved beyond 50,000 barrier. The index gained 403.02 points to close at 50111.67 level after almost 3 months on the back of institutional buying.

Market after a positive open witnessed minor selling pressure that led to benchmark KSE100 Index entering and trading in red during the first two hours of trading. Early declines were led by Index heavy E&Ps as investors tracked retreat in global crude prices while key Index names across major sectors struggled to carry momentum and traded lower on profit-taking.

Thereafter, steady buying both from institutional and retail investors helped stocks to regain momentum with Index heavy MCB Bank, Oil & Gas Development and Sui North Gas leading the recovery.

MCB, OGDC, SNGP, PSO and SEARL added 221 points while HUBC, HBL, NML, PPL and EFERT, eroded 105 points from the index.

Autos, Pak Suzuki hit upper price limit on last week’s announcement of another taxi scheme, while Indus Motors garnered attention after reporting a stellar quarterly result. Meanwhile, Lucky Cement closed flat while PSO closed higher despite both companies announcing a below-expected results.

PAEL continued to rally closing at all time high rate of 108.59 on expectations of strong sales in 2017 and expected uptick in earnings.

INDU reported earnings of Rs4.2 billion (EPS Rs53), up 41% YoY. PSO reported total sales up 62% to Rs 218 billion driven by higher oil prices. International oil prices surged by 77% in the period under review which was partially reflected in local ex-refinery prices.

In 3QFY17, LUCK reported 8% YoY growth in consolidated net sales, mainly on account of increase in sales from its subsidiary ICI Pakistan (ICI). ICI sales grew to Rs 10.8 billion, up 17% YoY due to higher revenues across all its businesses, especially Life Sciences and Polyester segments. Sales from cement operations were up 2% YoY during 3QFY17, mainly attributable to 7% YoY increase in local dispatches. On export front, dispatches were down by around 45% YoY during the outgoing period.

Nishat Mills reported 3QFY17 consolidated profit after tax attributable to owners of Rs 1.75 billion (EPS Rs 5), a decline of 31% as compared to Rs 2.54bn (EPS Rs7.2) reported last year, mainly due to higher costs. Market participation sustained with volumes increasing by 1% to 399 million shares while traded value was down 8% to Rs22.2 billion/$212 million.

On Monday shares of 402 companies were traded at the bourse of which 235 ended in green while 155 closed in red and only 12 remained unchanged.

Analysts are expecting that the ongoing bullish momentum will continue in near-term with benchmark KSE 100 Index possibly retesting its previous all-time high near 50,900 level before.