LAHORE: Following Monday’s weak sell off (sharp retreat amid low volume – largely driven by sell-off from Mutual Funds) the KSE-100 index reversed its course from the previous 2 sessions as it turned the tide against market bears. On its last trading day before elections, the KSE-100 index remained exposed to investor speculations on the possible outcome on Election Day. It is pertinent to note, that consensus has developed around PTI leading the race to form a coalition government with most sell-side institutions predicting the same.
Market volume and turnover expanded day on day basis (+75.8 per cent and +50.9 per cent respectively) as traders pre-empted a post-election rally. Materials (41.5 per cent of total turnover) dominated the trading activity once again followed by financials (17.1 per cent of turnover) and energy (16.6 per cent of total turnover).
Investor interest remained skewed towards the usual suspects, DGKC (7.9 per cent of total turnover), ENGRO (5.2 per cent of total turnover), LUCK (5.1 per cent of total turnover), HBL (4.7 per cent of total turnover), OGDC (4.3 per cent of total turnover) and ATRL (3.6 per cent of total turnover). The day ended on a buoyant note with the KSE-100 index raking in +875.24 points (+2.16 per cent) to close at 41,339.22.
Major contribution to the KSE-100 index upside came from industrials (+3.38 per cent), materials (+2.96 per cent), energy (+2.58 per cent), utilities (+2.29 per cent) and health care (+1.93 per cent). Within these sectors, MTL (+2.97 per cent), TRG (+4.86 per cent), LUCK (+3.54 per cent), ENGRO (+2.30 per cent), DAWH (+5 per cent), DGKC (+4.97 per cent), FFC (+1.56 per cent), ISL (+5 per cent), PPL (+2.55 per cent), POL (+3.54 per cent), OGDC (+2.03 per cent), SNGP (+4.8 per cent), KAPCO (+2.91 per cent) and SEARL (+2.37 per cent) contributed the most to Index gains.
Market participation for the KSE-100 index increased to 107.58 million shares from 61.17 million in the previous session (+75.88 per cent day on day basis). Major contribution to total market volume came from BOP (+2.71 per cent), EPCL (+4.85 per cent) and KEL (+4.15 per cent) churning 28.09 million shares out of the All Share volume of 190.85 million shares.
Daily traded value for the KSE-100 index increased to $50.08 million from $33.18 million in the previous session (+50.93 per cent day on day basis); DGKC ($3.96 million), ENGRO ($2.62 million) and LUCK ($2.55 million) were among top contributors from the traded value perspective. Major contribution to the KSE-100 index upside came from PPL (+2.55 per cent), POL (+3.54 per cent), LUCK (+3.54 per cent), HBL (+1.73 per cent) and ENGRO (+2.30 per cent) adding 237 points. On the flip side, COLG (-5 per cent) took away 17 points. The KSE-100 index is 9.5 per cent above its 52-week low of 37,736.73 reached on December 12, 2017, and 12 per cent below its 52-week high of 47,241.17 reached on August 4, 2017.
Technically speaking, the KSE-100 index staged a reversal from horizontal support (40,390) amid expanding turnover to close above intraday high from the previous session. Next resistance is at 41,849 (50EMA) and then the falling trend line resistance (42,200).
Trading at the exchange shall remain suspended on July 25, 2018, as Pakistan votes for the next government. Activity at the Pakistan Stock Exchange (PSX) shall resume on Thursday.