PSX stays on record-setting run; financials lead

Financial shares led the Pakistan Stocks Exchange (PSX) to record highs on Thursday and over a week-long impressive run in the market also forced  investors to reduce their safe-haven positions outside the bourse, dealers said.

They said the benchmark index crossed 47k level for the first time supported by local mutual funds taking positions in financials ahead of year-end expecting significant payouts. “Intraday rally was witnessed in the banking sector, as it gained to close 2.8 percent higher than its previous day close,” said Nabeel Haroon at JS Global.

The KSE-100 shares index gained 271.47 points or 0.58 percent to close at 47,210.06 points. KSE-30 shares index gained 228.69 points or 0.90 percent to end at 25,608.73 points. As many as 429 scrips were active of which 164 advanced, 252 declined and 13 remained unchanged.

The ready market volumes stood at 450.313 million as compared to 344.151 million shares a day earlier.  Faisal Bilwani at Elixir Securities said local smart money continued to buy equities for thirteenth consecutive session pushing benchmark KSE100 Index to highs above 47,000 level, setting another record.

“As of Tuesday, KSE-100 index has gained by over 10.5 percent in December 2016 so far, most in a month since April 2015 when market posted a return of 11.5 percent.” The day kicked off positive followed by selling in index heavy E&Ps owing to dip in global crude. Oil and Gas Development (OGDC) was down 1.2 percent, Pakistan Oilfields (POL) was down 2.1 percent and Pakistan Petroleum (PPL) closed 1.1 percent down.  Dealers said wider market struggled to find a clear direction thereafter until mid-day and traded volatile in a narrow range. However, market was pushed up by financials on heavy buying interest primarily from local institutions.

Habib Bank (HBL) up 5.0 percent closed at upper price limit while United Bank (UBL) up 3.5 percent, MCB Bank (MCB) up 2.5 percent and National Bank (NBP) up 2.1 percent also closed higher on excitement related to yearend earnings and payout.

Engro Foods (EFOODS) up 1.0 percent was positive as company notified transfer of management control to FrieslandCampina while Thal Ltd (THALL) surged 1.9 percent on expectations of a bumper payout as company notified investors of receiving Rs2.0 billion on exercise of put option in its subsidiary, Metro Habib Cash & Carry.

Going forward, analysts expect volatile trading as index heavy oils track global crude while financials along with industrials and cements continue to test new highs amid local buying. The ongoing rally has so far proven chartists wrong and bears are likely to find no solace amid strong domestic liquidity and optimism ahead of year end.

Companies posting highest gains include Rafhan Maize, up Rs196.50 to close at Rs8197.5/share and Wyeth Pakistan, up Rs136.94 to close at Rs4790.25/share. Companies posting major losses include Nestle Pakistan, down Rs90 to end at Rs8610/share and Bata Pakistan, down Rs70 to end at Rs4630/share. 

  Highest volumes were witnessed in Dost Steels Limited with a turnover of 58.424 million shares. The scrip gained 91 paisas to close at Rs11.56/share. Bank of Punjab was second with a turnover of 27.131 million shares. It shed 20 paisas to end at Rs18.08/share. Engro Polymer was third with a turnover of 23.829 million shares. It gained 78 paisas to finish at Rs17.42/share.