Market Daily: Equity market registers another day of gains, rising by 472 pts

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LAHORE: For a change, market bulls stepped up their game in Wednesday’s session and took inspiration from a buoyant close yesterday to stage a second consecutive close in the green. The day ended with the 100 Index closing up 471.90 points (+1.14 per cent) at 41,717.99. As market sentiment improved amid support from local players, Volume and Turnover (+13.95 per cent and 13.48 per cent on d/d basis) also surged in today’s session. Materials (31.4 per cent of total turnover) dominated the bulk of trading activity once again, thanks to DGKC (8.4 per cent of total turnover), ENGRO (3.8 per cent of total turnover) and FFC (3.3 per cent of total turnover). Turnover in Energy shot up on d/d basis (21.5 per cent of total turnover) amid heavy investor appetite for OGDC (9.8 per cent of total turnover) and POL (3.9 per cent of total turnover). However, Financials (15.5 per cent of total turnover) were on the back burner although UBL, HBL, MEBL and BOP managed to stay on investors’ radar.

Major contribution to the 100 Index gains came from Consumer Discretionary (+2.37 per cent), Industrials (+2.06 per cent), Materials (+1.92 per cent) and Energy (1.80 per cent) as value hunting in INDU (+5 per cent), HASCOL (+5 per cent), THALL (+4.08 per cent), NML (+2.27 per cent), MTL (+2.35 per cent), FFC (+3.04 per cent), LUCK (+2.41 per cent), ENGRO (+1.41 per cent), ISL (+5 per cent), DGKC (+3.2 per cent), MLCF (+4.97 per cent), INIL (+4.74 per cent), PPL (+3.15 per cent), POL (+2.28 per cent) and PSO (+1.92 per cent) contributed towards a closing in green. In related news, Interim Fin Min Dr Akhtar has requested the Financial Action Task Force to remove Pakistan from its grey list and apprised the watchdog of steps taken by the country to stem money laundering and terror financing. Furthermore, Chief of Army Staff General Bajwa has termed the general election as a “national duty” and said it should “be performed with utmost responsibility and without losing any focus on defence and internal security challenges in hand”.

Market participation for the 100 Index increased to 104.01mn shares from 91.30mn in the previous session (+13.91 per cent on d/d basis). Major contribution to total market volume came from POWER (-0.48 per cent), SILK (-3.36 per cent) and BOP (+0.91 per cent) churning 67.35mn shares out of the All Share volume of 235.49mn shares. Daily traded value for the 100 Index increased to USD 57.69mn from USD 50.53mn in the previous session (+14.2 per cent on d/d basis); OGDC (USD 5.64mn), DGKC (USD 4.84mn) and SNGP (USD 4.81mn) were among top contributors from the traded value perspective. Major contribution to the 100 Index upside came from PPL (+3.15 per cent), FFC (+3.04 per cent), POL (+2.28 per cent), LUCK (+2.41 per cent) and ENGRO (+1.41 per cent) adding 195 points. On the flip side, PAKT (-3.52 per cent), HBL (-0.43 per cent) and PMPK (-5 per cent) took away 39 points. The 100 index is 11 per cent above its 52-week low of 37,736.73 reached on December 12, 2017 and 11 per cent below its 52-week high of 47,241.17 reached on August 4, 2017.

Technically speaking, the 100 Index is trading in correction territory (-11.51 per cent) and could still test levels last seen in October 2017 (sub 40k). As participation expanded market momentum can push the 100 Index to test resistance at 10EMA (42,220). While major supports are at 200 Week EMA (38,463), 52wk low (37,736) and 50 Month EMA (37,618) we expect sub 40k levels (39,250-39,600) to entice market bulls into staging a sustainable comeback.

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