PM Imran’s visit to Karachi helps market cross 39K

KARACHI: Market observed a complete turnaround after seeing bleak trading in previous week. An overall bullish session was seen as an increase of 1.9 per cent was seen in KSE-100. Meeting of prime minister and finance minister with SECP and brokers to resolve their problems played imminent role in overall market positivity.

The benchmark KSE-100 index closed higher by 737.58 point to close at 39,299.63 points. KSE All Share Index increased by 461.61 to end at 28,793.11, KSE 30-Index improved by 417.77 points to conclude at 18,800.19, whereas KMI 30-Index enhanced by 1,659.10 points to finish the day at 66,423.37 level.

Murtaza Jafar at Elixir Securities said inline with our Chartist’s view, KSE100 index continued with its upward momentum to close at 39,300. Value hunting was observed across the board as investors cheered the latest promises made by PM Imran Khan and Finance Minister Asad Umar in their visit to the Pakistan Stock Exchange on Sunday – the two most notable commitments being 1) rationalizing the CGT (Taxes on Capital Gains) on stocks to those applicable on Real Estate and 2) reducing the unfair Presumptive Tax on Stock Brokers to 0.01% from 0.02% of value traded.

While the larger concerns on economy remain undeterred, the latest set of relaxations did serve as a much needed breather for the market.

Energy stocks contributed most of the gains in today’s session after OPEC decided to reduce production by 800,000 barrels per day while another 400,000 barrels reduction was announced by Non OPEC members taking total production reduction to 1.2mn barrels – this allowed international crude oil to rally by around 2.5% on Friday post equity market close in Pakistan.

Oil and Gas Development Company Limited OGDC PA +4.4%, Pakistan Petroleum Limited PPL PA +5.0% and Pakistan Oil Fields Limited POL PA +4.2% collectively contributed 234 points to the gains in KSE100 today. On the volume charts, K-Electric Limited KEL PA +8.1% traded 34.6mn shares after Shangai Electric and Abraaj Capital decided to disclose details of their Share Purchase Agreement (SPA) with the OGRA Officials in order to secure the security clearance from Government of Pakistan. Going forward, we expect Financials to take the center stage of attention.

The advance to decline ratio in the broader market remained in favor of bulls. Out of 356 scrips, 242 scrips advanced, 93 declined while the value of 21 scrips remained intact.
The ready market volume increased by 19.95 per cent to 154.173 million shares as compared to 128.530 million shares traded on last trading day.

K-Electric Limited topped the list of actives, higher by Rs 0.45 at Rs 5.98 on 34.68 million shares, followed by Engro Polymer & Chemical Limited increased by Rs 1.01 at Rs 37.80 on 7.95 million shares and Bank of Punjab improved by Rs 0.28 at Rs 13.20 on 5.99 million shares.

Other actives were Maple Leaf Cement Factory ascended by Rs 0.16 at Rs 44.37 on 5.95 million shares and Lotte Chemical Limited enhanced by Rs 0.01 at Rs 18.43 on 5.38 million shares.

Fahad Qasim at Topline Securities said KSE-100 Index closed in the positive today, for the second session in a row, gaining 738 points (or +1.9%) and closing at 39,300 level. Investors were mainly motivated by Prime Minister Imran Khan’s meeting with a Pakistan Stock Exchange delegation led by PSX Chairman Sulaiman Mehdi on Dec 09, 2018.

During the meeting several strategies were discussed to try and rejuvenate the Pakistan Stock Exchange, which included removal of advance Tax of .02% on purchase and sale of shares and allowing carry forward of capital losses up to 3 years among several other decisions.

Oil & Gas exploration companies led the recovery today, as OPEC and Non-OPEC countries decided to cut oil production by 1.2mbpd from January, 2019 onwards.

This led to investors flocking towards Oil scrips, like PPL (+5%), OGDC (+4.25%), POL (+3.66%) and MARI (+2.66%), as the sector added 257 points to the index. Investor participation was mixed today as traded volumes increased by 20% to 154mn, while traded value fell by 1% to US$48mn.

The overall market capitalization increased by Rs 124.191 billion to Rs 7.9066 trillion against Rs 7.7824 trillion observed on last trading day.

Philip Morris Pakistan Limited and Wyeth Pakistan Limited remained the top gainer by Rs 60.55 and 47.59 to close at Rs 3,500.00 and Rs 1,048.59 respectively, while Rafhan Maize Pakistan Limited and Pakistan Tobacco Company Limited was the major loser which lost Rs 339.99 and Rs 25.00 to close at Rs 6,760.01 and Rs 2,349.00 respectively.

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