KSE-100 edges up with opening of some industries
Statesman Report
KARACHI: The stock market maintained its bullish trend with a slight uptick on Wednesday as federal and provincial governments allowed various industries and sectors to resume business activities while extending the nationwide lockdown.
During intra-day trading, the bourse came under pressure due to a slump in global crude oil prices and concern over the International Monetary Fund (IMF) projection of a 1.5% decline in Pakistan’s GDP in FY20.
At close, the benchmark KSE-100 index recorded an increase of 19.45 points, or 0.06%, to settle at 31,242.19.
Arif Habib Limited, in its report, stated that the market opened on a positive note with a gain of 165 points, which primarily came in reaction to the opening of various industries and sectors permitted by the federal and provincial governments.
The index surged 572 points, barring stocks of exploration and production and oil and gas marketing companies, during the session despite a downward trend in international crude prices, it added.
As West Texas Intermediate (WTI) crude dropped more than 4.5% to an 18-year low of $19.20 per barrel, exploration and production and oil and gas marketing companies lost support maintained in trading earlier in the session.
The report pointed out that the fertiliser sector displayed a strong performance. In early trading, support came from index heavyweights such as Engro, Hubco, Lucky Cement, Dawood Hercules and Fauji Fertiliser Company.
Pakistan Investment Bond (PIB) yields dropped further, sparking optimism about a further cut in policy rate in the next monetary policy. PIBs of 10-year tenure traded at 8.65%.
The cement sector continued to lead trading volumes with 61.9 million shares changing hands, followed by oil and gas marketing companies (15.6 million) and chemical sector (14.2 million).
Stocks that contributed positively to the index included Dawood Hercules (+59 points), Lucky Cement (+18 points), Fauji Fertiliser Company (+14 points), Abbott Laboratories (+12 points) and Engro Polymer and Chemicals (+11 points).
Meanwhile, stocks that contributed negatively included OGDC (-37 points), Pakistan Petroleum Limited (-35 points), Pakistan Oilfields (-29 points), Nestle (-25 points) and Bank Alfalah (-16 points).
JS Global analyst Danish Ladhani said the market opened on a positive note, touching intra-day high and low of +572 and -41 points respectively. It closed at 31,242, up 19 points.
“On the economic front, the IMF expects negative 1.5% growth in Pakistan this year. Meanwhile, on the oil front, crude prices plummeted in the international market,” he added.