KARACHI: Pakistan Stock Exchange (PSX) benchmark KSE-100 share index on Thursday closed above the historic 50,000 points level for the first time, while market capitalisation of listed shares also hit a record high of over Rs10 trillion, dealers said.
The index, after making a couple of unsuccessful attempts during the week, finally closed at 50,192.36 points. It gained 0.88 percent or 435.59 points. KSE-30 shares index gained 1.21 percent or 322.19 points to end at 26,977.61 points.
As many as 437 scrips were active of which 237 advanced, 184 declined and 16 remained unchanged. The ready market volumes stood at 449.717 million as compared to 459.446 million shares a day earlier.
Analysts said cash rich domestic investors bought large-cap shares in quarterly earnings season as relatively stable political scenario in the country and better macro-economic outlook weighed on market sentiment.
They added that the index level also mirrors increases in regional and Asian stocks in step with stellar gains in European and US stock markets overnight.
“Reforms by the regulator as well as the bourse, support by allied institutions and robust corporate growth despite hard time helped the market achieve this milestone,” said Khurram Schehzad Chief Commercial Officer at JS Global.
Analysts said excitement levels were high in market names with near-term result announcements likes of PAEL, DGKC and FFC. “Concentration remained high at the futures counter, which made up almost 30 percent of the traded value,” said analyst Zeeshan Afzal at Insight Securities.
Higher global crude prices, Economic Coordination Committee’s approval of fertilizer subsidies for 2017 and export of surplus urea fertilizer also played catalytic role in the record close.
JS Global in its post market comments said positivity prevailed in the market during most part of the day and hefty buying was witnessed during the latter hours, which helped market to close comfortably above 50,000 levels.
Banking sector led the gain in the market as index heavy weight HBL rose 1.90 percent, MCB climbed 2.72 percent and UBL increased 1.64 percent to close in the green zone.
Investor interest was seen in fertilizer sector on the back of dispatch numbers released by NFDC for the month of December 2016, which showed improvement in urea dispatches 7.0 percent and 17 percent surge in DAP off take.
Fauji Fertilizer (FFC) up 0.65 percent and Fatima Fertilizer up 2.4 percent were among the major gainers of the aforementioned sector.
“Bank Al-Habib (BAHL) gained 3.52 percent as the banking company declared its year end result for 2016 posting earning per share of Rs7.31 versus street estimate of around Rs6.6. This earning was accompanied by a year-end dividend of Rs3.5/share” JS Global said.
Lucky Cement gained 1.14 percent as the posted better than expected EPS of Rs21.76 for the half year ended December 31, 2017. Companies reflecting highest gains include Bata Pakistan up by Rs37.41 to end at Rs4090/share and Thal Industries up Rs24 to end at Rs509/share.
Schehzad said Pakistan’s market will be added to international equity index compiler MSCI’s Emerging Markets after a gap of eight years and availability of abundant liquidity and higher corporate earnings portrayed a bright picture going forward.
Companies reflecting highest losses include Rafhan Maize down Rs350 to Rs7800/share and Hinopak Motors down Rs85.47 to end at Rs1714.53/share.
Highest volumes were witnessed in K-Electric Limited with a turnover of 74.078 million shares. The scrip gained 37 paisas to close at Rs10.25/share. Japan Power was second with a turnover of 32.376 million shares. It gained 21 paisas to end at Rs8.22/share. Pakistan International Airlines (PIAC) was third with a turnover of 26.176 million shares. It gained 47 paisas to finish at Rs9.80/share.