Daily Times

KARACHI: Pakistan equities on Wednesday closed rock solid at 40,898 level as momentum in Steel and Cements boosted investor’s confidence.

The bourse concluded on a positive note once again as benchmark KSE-100 index closed 965 points higher at 40,898 levels. Mid day buying in Financials alone contributed 240 points in Wednesday’s gain, making it the second biggest daily gain for year 2018.

Investors will closely monitor electoral process next week. A timely and smooth conclusion will be greatly positive for sentiments as that will not only mark the completion of Five Year term of second democratic government but will set another precedent for the upcoming government to remain in power for next 5 years, said equity analyst, Murtaza Jafar.

Market kicked off positive hitting a day’s high of 40,980. Wednesday’s major heavyweights namely, Habib Bank Limited (HBL0 gaining 3.92 percent, United Bank limited (UBL) gaining 4.48 percent, Lucky Cement gaining 4.19 percent, Engro gaining 2.22 percent and Fauji Fertlizer Company (FFC) gaining 2.47 percent cumulatively contributed +306 points.

Traded volumes increased by 75 percent day-on-day DoD to 248 million shares, while value traded increased to $ 67 million. Engro Polymer Chemiocal (EPCL) with 4.89 percent gains from the Chemical sector led the market volumes with 10 million shares.

For the second consecutive day the cement sector led optimism at the bourse where DG Khan Cement, Maple Leaf Cement, Chitral Cement, Pioneer Cement and Kohat Cement all closed at their respective upper circuits.

Investor’s interest was witnessed in the banking space where they took the opportunity of accumulating stocks at attractive valuations. UBL, Faysal Bank, HBL, Bank Alflah and MCB closed in the green zone. Fertilizer sector closed positive on the back of news that urea prices increased by Rs50 taking it to a total of Rs1,630 – 1,640. As a result, Engro Fertiliser, FFC and Fauji Fertiliser Bin Qasim closed in the green trajectory.

An equity analyst Maaz Mulla expects the market to depict a similar trend, therefore recommend investors to see any upside in the market as an opportunity to sell.

Published in Daily Times, July 19^th 2018.