Market Daily: KSE 100 nears 42,800 points, settles 1,100 points in the green

LAHORE: After the tepid but buoyant move on the first day of the week, market bulls woke up from their beauty sleep in today’s session, took charge of the situation and resorted to bear bashing as oversold indicators and attractive valuations managed to galvanize investor interest across multiple sectors. Volume and Turnover for the 100 Index shot up in tandem with risk appetite (+76 per cent and +101 per cent on d/d basis) as an oversold market rallied amid short squeeze and fear of missing out market bottom. Heavy activity was seen in Materials (33.05 per cent of total turnover; up 114.4 per cent on d/d basis), Financials (25.9 per cent of total turnover; up 68 per cent on d/d basis) and Utilities (13.3 per cent of total turnover; up 273.7 per cent on d/d basis). Within these sectors major activity was seen in UBL (10.1 per cent of total turnover), SNGP (7.6 per cent of total turnover), DGKC (6.5 per cent of total turnover), MCB (6.5 per cent of total turnover), FCCL (5.6 per cent of total turnover), ENGRO (4.8 per cent of total turnover) and HBL (3.6 per cent of total turnover).

Major gains to the 100 Index outstanding performance came from Materials (+3.66 per cent), Utilities (+3.47 per cent), Energy (+3.05 per cent), Health Care (+3 per cent) and Industrials (+2.7 per cent). Major contribution came from ENGRO (+5 per cent), FFC (+4.46 per cent), DAWH (+4.99 per cent), LUCK (+1.82 per cent), HUBC (+4.66 per cent), SNGP (+4.95 per cent), PPL (+3.67 per cent), POL (+4.95 per cent), PSO (+3.61 per cent), OGDC (+1.42 per cent), SEARL (+4.95 per cent), PIBTL (+5.69 per cent) and TRG (+4.74 per cent). Additional pressure came from select names in Financials (+2.03 per cent) and Consumer Discretionary (+1.59 per cent) thanks to HBL (+1.99 per cent), BAHL (+3.87 per cent), MCB (+1.22 per cent), HMB (+3.51 per cent) and NML (+3.36 per cent). Historic data of market performance during previous caretaker setups shows on average a positive return of 14 per cent (since 1993-2013) thus raising investors’ hope for better market performance during the interim setup. Amid related news, PM Abbasi and Opposition Leader in the National Assembly failed to reach consensus on the name for the position of caretaker premier during a meeting earlier today. Another meeting will be held tomorrow or day after to finalize the caretaker premier.

Market participation for the 100 Index increased to 92.3mn shares (+76.3 per cent on d/d basis). Major contribution to total market volume came from FCCL (+4.47 per cent), PAEL (+4.52 per cent) and TRG (+4.74 per cent) churning 27.97mn shares out of the All Share volume of 140.66mn shares. Daily traded value for the 100 Index increased to $ 54.93mn from $ 27.39mn in the previous session (+100.6 per cent on d/d basis); UBL ( $ 5.51mn), SNGP ( $ 3.86mn) and DGKC ( $ 3.51mn) were among top contributors from traded value perspective. Major contribution to the 100 Index upside came from ENGRO (+4.80 per cent), PPL (+3.67 per cent), POL (+4.95 per cent), HUBC (+4.66 per cent) and FFC (+4.46 per cent) adding 346 points. The 100 index is 13 per cent above its 52-week low of 37,736.73 reached on December 12, 2017 and 19 per cent below its 52-week high of 53,127.24 touched on May 25, 2017.

Technically speaking, the day ended on a very positive note as market bulls were able to move past highs from previous 4 sessions in just one go. However, the 100 Index risks entering a Death Cross (negative crossover of 50/200EMA) soon. Next resistance is 20EMA (43,460) and previous weeks high (43,595).

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