Market watch
Benchmark index gains 579.34 points to settle at 41,535.92
news desk
KARACHI
Stocks were on a rapid march upwards for the third consecutive day in the current week with the benchmark KSE-100 index pushing its way through the 41,000-point mark with a gain of nearly 600 points.
Trading was brisk as investors shifted towards index-heavy sectors – oil and gas, cement and power – amid the ongoing corporate result season. However, direction of the market was set by commercial banks as Bank AL Habib, Allied Bank and Bank Alfalah announced their quarterly earnings.
The upward trajectory was further fuelled by the surplus current account balance unveiled by the State Bank of Pakistan (SBP) during the trading session.
Pakistan’s current account registered a record surplus of $792 million in the first quarter of current fiscal year, rising on the back of increase in remittances and month-on-month rise in exports in September.
The KSE-100 index opened on a positive note and remained bullish throughout the session, going above the 41,500-point level.
However, its brief stay in the red was caused by the political uncertainty currently prevailing in the country coupled with news of an explosion in a multi-storey building in Karachi.
At close, the benchmark KSE-100 index recorded an increase of 579.34 points, or 1.41%, to settle at 41,535.92 points.
Arif Habib Limited, in its report, stated that it was the third consecutive positive close for the KSE-100 since the beginning of the week and the index added 1,400 points to last week’s close.
“Though the weekend left vestiges of political uncertainty, institutional investors engaged in brisk buying on the back of quarterly corporate earnings,” it said.
Banking sector results helped the index sustain existing gains. Investors also took positions in oil and gas, cement and power sectors with a positive view on the upcoming Financial Action Task Force (FATF) ruling, scheduled to be announced by the end of current week.
The fertiliser sector outperformed on the back of healthy earnings and hefty dividend declaration by Engro Fertilisers, which was reflected in Engro Corporation as well.
By the end of session, UBL attracted investor interest, which helped the bank regain the value lost due to profit-booking.
Sectors contributing to market performance included banks (+185 points), fertiliser (+116 points), technology (+53 points), power (+32 points) and exploration and production (+22 points).
JS Global analyst Danish Ladhani said the KSE-100 index gained 579 points after touching a high of +656 points. It closed the session at 41,536.
“The market remained bullish with high volumes amidst result season,” he stated, adding, “Political uncertainty still prevails amidst ongoing Pakistan Democratic Movement (PDM) rallies.”
