Stocks extend record streak, index breaks 44,000 for first time

Cement shares and strong oil prices bolstered stocks on Tuesday as the market extended its rally that pushed the benchmark index above 44,000 for the first time to close at record level for a second straight day, dealers said.

“Higher global crude prices amid OPEC output cut agreement played a catalyst role in bullish close,” said analyst Ahsan Mehanti at Arif Habib Corp.

“Besides, surge in cement sales, highest cement capacity utilisation and rising banking spreads data in Nov'16 also played important role towards upward momentum.”

The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index gained 1.05 percent or 459.43 points to close at new all time high of 44,199.40 points. The highest index of the day remained at 44,236.89 points while the lowest level of the day was recorded at 43,739.97 points. KSE-30 Index also increased by 255.73 points to 23,736.35 points.

Turnover rose by 27 million shares to 372.58 million shares, trading value rose to Rs19.72 billion from Rs14.10 billion, while market capital expanded to Rs8.93 trillion against Rs8.86 trillion. Out of 431 companies’ active in the session, 231 closed in green, 186 in red while 14 remained unchanged.

Analyst Faisal Bilwani at Elixir Securities said equities settled at fresh record highs on institutional buying. “Stocks opened marginally positive while wider market gradually inched up as flows suggested no major foreign selling and rumors of aggressive local buying did rounds,” he said.

As court hearing on the prime minister’s family case once again ended without any serious development, volumes spiked with cement sector leading gains on excitement over record sales for the outgoing month; Lucky Cements (up one percent) closed at new record high near Rs750/share while DG Khan Cement, Maple Leaf Cement and Fauji Cement were among over ten listed companies that gained over 5.0 percent on the day.  Engro Foods (up 5.0 percent) hit upper price limit as last date to offer shares as part of public tender offer passed and stake sale and handover to FrieslandCampina comes closer to completion.

“As market breaks to uncharted territory, we see the index to remain buoyant and fresh funds to channel through, primarily from local HNW (high net worth) and institutional space, before a breather or profit taking,” Bilwani said.

Highest increase was recorded in shares of Rafhan Maize, which rose by Rs288.45 to Rs8,078.45/share, followed by Wyeth Pak Ltd that increased by Rs217.40 to Rs4,565.40/share. Major decline was noted in shares of Unilever Foods, which fell by Rs100 to Rs5,600/share, followed by Khyber Tobacco that decreased by Rs58.70 to Rs1,115.30/share.

Significant turnover was recorded in stocks of K-Electric Ltd, Fauji Cement XD, Faysal Bank, Aisha Steel Mill, Askari Bank, Bank of Punjab, Power Cement Ltd, WorldCall Telecom, Sui Southern Gas Company Limited and Oil and Gas Development Company.

K-Electric Ltd remained the volume leader with 22.80 million shares with an increase of 18 paisas to Rs9.41/share. It was followed by Fauji Cement XD with 17.31 million shares with an increase of 1.95 paisas to Rs41.10/share.  Shares’ turnover in the future contracts increased to 42.98 million shares from 30.12 million shares traded in the previous session.