Market Daily: 60 points help KSE 100 break the losing streak

Cement and oil sectors helped index turn green after 7 consecutive sessions

LAHORE: Indices at the Pakistan Stock Exchange (PSX) finally came out of the bearish spell, that lasted for 7 successive sessions. Bulls pushed the KSE 100 index up by 344.12 points to touch Thursday’s high of 44,139.12 before it changed up 60.78 points at 43,855.78.

The market turned green in Thursday’s session as cement manufacturers mull to raise cement prices by Rs15 per bag, as a result, cement sector alone contributed 67 points to index gain. Moreover, Sui companies added 33 points to index as the market expects favourable return formula for these utility companies.

Also, according to latest data released by Pakistan Bureau of Statistics (PBS), export of cement soared to $16.882 million in March 2018 from $11.37 million in the same month of 2017, showing an appreciation of 48.40 per cent. On a month-on-month basis, exports went up by 27.40 per cent.

The KMI 30 index surged by 378.48 points to end the session at 75,322.51.

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The KSE All Share Index failed to hold together any of the 190.82 points gains of the day and made another close in the red, negative 11.00 points. The advancers to decliners ratio for the day stood at 187 to 166.

The market volumes crawled up further from previous sessions 191.85 points to 196.27 million. It was First Dawood Investment Bank Limited (FDIBL +24.94 per cent) dominating the volume chart again. The script had 13.67 million shares exchanged and elevated its one-week gains to 165 per cent.

Dewan Cement Limited (DCL -4.97 per cent) followed with 11.12 million shares traded along with Invest Capital Investment Bank Limited (ICIBL -0.71 per cent), volume 11.07 million.

Moreover, Banks witnessed 8th straight bearish spell amid their weak 2018 earnings outlook coupled with the continuation of super tax. Total market participation in terms of volume went up by 2 per cent to 196 million whereas, value declined by 20 per cent to $55 million.

Additionally, investment banks, cement, and technology emerged as the top traded sector with a cumulative volume of 42 million, 29 million and 21 million shares respectively.

SNGP, MLCF, ENGRO, DGKC, and PPL remained top contributors in Thursday’s session with a contribution of 82 points.

Meanwhile, oil prices clocked up further as traders adjusted to the prospects of renewed US sanctions against major crude exporter Iran amid an already tightening market. The United States plans to impose new sanctions against Iran, which produces around four per cent of global oil supplies, after abandoning an agreement reached in late 2015 which limited Tehran’s nuclear ambitions in exchange for removing US-Europe sanctions.

Technically speaking, Wednesday’s reversal failed to sustain its momentum in Thursday’s session amid weak participation and formed a Doji. A negative cross-over of Moving Averages (10/50EMA), thin participation and 20WEMA (44,139) may keep animal spirits in check. Next support is 43,386.

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