KARACHI: Bullish sentiments prevailed at the stock market on first trading day of the week, with the index remaining firmly above 40,000 points for the entire session.
Although investor interest remained subdued, the euphoria over the economic reforms package, announced last week, continued to drive the market. Additionally, inflows from the United Arab Emirates (UAE) and Saudi Arabia also added to the optimism.
Steel, cement, bank and chemical sectors fared well with some price increases while selling pressure was also noted in the banking sector.
At the end of trading, the benchmark KSE 100-share Index recorded an increase of 155.31 points, or 0.39%, to settle at 40,420.09.
Elixir Securities’ analyst Murtaza Jafar said the benchmark KSE-100 index closed higher as aggressive buying was witnessed in refineries, oil marketing companies and automobile assemblers.
“A winning streak continued in the auto sector post-favourable regulatory changes in the economic reforms package and curtailment in illegal imports of used cars (earlier this month),” said Jafar. Honda Atlas Cars (+5%) and Pak Suzuki Motor Company (+5%) closed at their respective upper circuits.
In order to support the oil refining sector, the government changed its earlier stance and imposed a complete ban on the import of furnace oil, allowing Attock Refinery (+5%), National Refinery (+5%) and Pakistan Refinery (+5%) to hit their respective upper ceilings for the day. Byco Petroleum (+7.4%) also generated interest from the momentum traders.
“[We] expect the market to consolidate between 40,600 and 40,100 points as investors await the upcoming monetary policy (likely to be announced on January 31) for further direction.”
Overall, trading volumes decreased to 126 million shares compared with Friday’s tally of 156.1 million. The value of shares traded during the day was Rs5.13 billion.
Shares of 334 companies were traded. At the end of the day, 183 stocks closed higher, 134 declined and 17 remained unchanged.
PIAC was the volume leader with 15.2 million shares, gaining Rs0.81 to close at Rs7.27. It was followed by TRG Pakistan with 7.9 million shares, gaining Rs0.37 to close at Rs26.82 and Fauji Foods with 6 million shares, losing Rs0.84 to close at Rs33.84.
Foreign institutional investors were net buyers of Rs387.4 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.
