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Panama case result keeps market robust

Ghulam Raza Rajani

KARACHI: Market witnessed euphoria seeing a record intraday high of 1,900 plus points. Result of panama case going somehow in favor of ruling government was taken up by market wholeheartedly as most of the scrips ended at upper locks. Higher level of interest from funds was seen this resulted in higher participation volumes.
The benchmark KSE-100 index closed higher by 1,140.08 point to close at 48,743.56 points. KSE All Share Index increased by 622.47 to end at 33,216.34, KSE 30-Index ascended by 634.20 points to conclude at 25,926.24, whereas KMI 30-Index improved by 1,933.12 points to finish the day at 84,313.63 level.
Adnan Sami Sheikh, Equity Research Analyst, Topline Securities Limited said index surged to a high of 49,509pts higher by 1905pts or up by 3.85 per cent soon after announcement of panama case verdict, in point terms plus 1905pts is the largest ever single day upside move. Once the initial euphoria settled, some participants opted to square positions, which resulted in the market receding from its high to close at 48,744pts up by 1,140pts or higher by 2.4 per cent. Key points of the verdict are 1 PM was not found guilty, 2. SC ordered further investigation & directed formation Joint Investigation Team (JIT) comprising of FIA, NAB, MI/ISI, and SECP etc. The JIT have been given a time frame of 60 days to complete its investigation. Market witnessed huge activity with volumes surging 54 per cent d/d to 408mn.sh while traded valued exploded 68 per cent to Rs25.7bn/US$245mn. HBL reported EPS of Rs6.1 flat YoY and inline with expectations. ASTL reported EPS of Rs1.1 minus by 9 per cent YoY, & the result was above market expectations. Amreli Steel (ASTL) announced further expansion plans in addition to the expansion currently underway. The current expansion envisions taking re-bar rolling capacity from 180,000tons to 480,000tons; while in today's notice, ASTL is aiming for 750,000 tons of re-bar capacity by FY19
The advance to decline ratio in the broader market remained in favor of bulls. Out of 395 scrips, 320 scrips advanced, 64 declined while the value of 11 scrips remained intact.
The ready market volume increased by 53.63 per cent to 408.16 million shares as compared to 265.68 million shares traded on last trading day.
K-Electric Limited topped the list of actives, decreased by Rs 0.06 at Rs 8.18 on 29.22 million shares, followed by Engro Polymer Limited ascended by Rs 0.51 at Rs 26.18 on 27.64 million shares and TRG Pakistan Limited enhanced by Rs 2.33 at Rs 52.83 on 20.97 million shares.
Other actives were Aisha Steel Mills Limited recovered by Rs 1.15 at Rs 24.23 on 20.24 million shares and Fauji Cement Company Limited improved by Rs 2.02 at Rs 44.44 on 13.48 million shares.
Faisal Bilwani at elixir securities said Pakistan Equities closed thunderous Thursday positive after taking investors for an unprecedented and the wildest ride ever as benchmark KSE100 Index witnessed a record move of near 2150 points on the day. Trading started cautiously as investors awaited Supreme Court's verdict however institutional flows primarily led by locals helped wider market post modest gains by mid day. Fresh wave of buying followed Court's decision that averted threat of PM Nawaz's disqualification and ordered further probe into allegations against PM and his family. Benchmark KSE100 index at its peak gained by as much as 4 per cent or 1900 points where profit bookers and reportedly foreign investors took advantage and off loaded while earnings by Habib Bank that was inline with expectations was largely and understandably ignored by the market. Given no immediate threat to PM and despite calls by Imran khan led PTI for Prime Minister to resign, we see market to cheer the clarity in the short term with KSE100 index likely re-testing previous highs of 50k+. Having said this, news flow over probe will continue to challenge upside and trigger resistances given fortnightly hearings on probe by investigative agencies. Ongoing earnings season and budget related expectations will certainly attempt to regain more limelight in days ahead and we are confident that MSCI EM upgrade related excitement will help channel fresh liquidity both from domestic and foreign investors.
The overall market capitalization enhanced by Rs 184.49 billion to Rs 9.606 trillion against Rs 9.421 trillion observed on last trading day.
Sanofi Aventis Limited and Sapphire Fiber Limited remained the top gainer by Rs 94.00 and Rs 54.62 to close at Rs 1,992.00 and Rs 1,147.12 respectively, while Rafhan Maize Pakistan Limited and Unilever Pakistan Foods Limited were among the major loser which lost Rs 75.00 and Rs 49.00 to close at Rs 7,125.00 and Rs 6,201.00 respectively.