Market Daily: Bulls hungry as KSE-100 jumps 288 points

LAHORE: Indices at the Pakistan Stock Exchange (PSX) had a better day on Thursday compared to the previous session on Wednesday despite negative news flow influencing investor sentiment. A jump in trade deficit numbers to an all-time high of $37.67 billion for FY18, up 16 per cent or $5.2 billion on year on year (YoY) basis, witnessed a low volume selloff in the first session. However, value hunters stepped in to support the falling Index and lifted it back to green.

The day ended with the KSE 100 index closing up 288.36 points (+0.73 per cent) at 39,875.12. Market participation took a step back with volume and value down 18.33 per cent and 12.74 per cent respectively, amid overnight losses in oil prices (brent -5.2 per cent), heavy foreign selling, ongoing political noise and concerns on the economy.

The KMI 30 index was up by 492.99 points at close. Whereas, KSE All Share index appreciated by 84.03 points and ended the day at 29,050.88. The advancers to decliners ratio stood at 173 to 127.

Activity in materials and financials were up 34.4 per cent and 32.5 per cent of total turnover respectively, dominated the trading activity in Thursday’s session. Investor appetite remained high for DGKC (7.73 per cent of total turnover), ENGRO (4.91 per cent of total turnover), UBL (17.3 per cent of total turnover) and HBL (3.9 per cent of total turnover) amid attractive valuations.

Major gains to market performance came from materials (+1.57 per cent), consumer discretionary (+1 per cent) and financials (+0.88 per cent) amid gains in ENGRO (+2.34 per cent), FFC (+3.05 per cent), EFERT (+3.39 per cent), DAWH (+2.7 per cent), INDU (+3.52 per cent), THALL (+3.32 per cent), MCB (+1.30 per cent), HBL (+0.86 per cent), MEBL (+4.72 per cent) and BAHL (+0.70 per cent).

Market participation for the KSE 100 index declined to 59.18 million shares from 72.46 million in the previous session (-18.33 per cent on day on day basis). Major contribution to total market volume came from FCCL (-1.90 per cent), PIBTL (-3.12 per cent) and EPCL (+4.69 per cent) churning 14.72 million shares out of the All Share volume of 108.90 million shares. Daily traded value for the KSE 100 index declined to $33.17 million from $38.01 million in the previous session down 12.74 per cent; UBL ($5.59 million), DGKC ($2.56 million) and ENGRO ($1.62 million) were among top contributors from a traded value perspective.

Major contribution to the KSE 100 index upside came from ENGRO (+2.34 per cent), FFC (+3.05 per cent), EFERT (+3.39 per cent), HUBC (+1.91 per cent) and MCB (+1.30 per cent) adding 150 points. On the flip side, PAKT (-4.80 per cent), OGDC (-0.51 per cent) and SHFA (-5 per cent) took away 43 points. The KSE 100 index is 6 per cent above its 52-week low of 37,736.73 reached on December 12, 2017, and 16 per cent below its 52-week high of 47,241.17 reached on August 4, 2017.

Technically speaking, the KSE 100 index staged a buoyant close as value hunting took centre stage in the second session. Analysts believe the bottoming out process has started now with limited downside risk, whereas, immediate support is at 39,236 (intraday low).

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