PM disqualification keeps Index in doldrums

KSE-100 Index sees volatile trading day closing higher by mere 6 points

Ghulam Raza Rajani

KARACHI: Market witnessed sheer rollercoaster ride as index remained in sixes and sevens. Decision related to disqualification of prime minister by Supreme Court kept market in bearish mood as a decline of more than 1,600 points in first half was seen. Buying from local retailers & banks helped market to rebound and end the week in green.

The benchmark KSE-100 index closed up by 6.27 point to close at 45,912.03 points. KSE All Share Index increased by 142.21 to end at 32,438.03, KSE 30-Index declined by 73.70 points to conclude at 23,854.00, whereas KMI 30-Index enhanced by 108.57 points to finish the day at 78,379.50 levels.

Ali Raza at Elixir Securities said an exciting day comes to an end with benchmark KSE100 index managing a green close after wild swings as Supreme Court announced the much-awaited verdict on Panama Case and disqualified Prime Minister Nawaz Sharif. Following the decision, Nawaz Sharif announced stepping down and dissolved the federal cabinet with meetings ongoing to decide on appointing a new Prime Minister. Benchmark KSE100 Index's first print in PM session was 3.6% down or approx 1670 pts and AM session was 1.6% down or approx 750 points; however value buying in afternoon session, primarily led in early surge by Locals, helped wider market to completely recover from the knee-jerk dip post verdict announcement. On leader board, Hub Power HUBC +5% emerged as the top gainer as investors in a bid to hedge from possible Pak Rupee depreciation in future built fresh positions in the stock while notable Oil plays also received most attention during recovery due to their dollar-linked revenues. Expect investors to closely track developments on domestic politics with reaction from ruling party PML-N providing more clarity and we see value buyers coming out and mainly supporting the market next week.

The advance to decline ratio in the broader market remained in favour of bulls. Out of 364 scrips, 218 scrips advanced, 132 declined while the value of 14 scrips remained intact.

The ready market volume increased by 106.38 per cent to 327.76 million shares as compared to 158.81 million shares traded on last trading day.

Azgard Nine Limited topped the list of actives, higher by Rs 0.92 at Rs 14.65 on 24.94 million shares, followed by Engro Polymer Limited increased by Rs 0.08 at Rs 37.03 on 19.75 million shares and TRG Pakistan Limited up by Rs 1.61 at Rs 41.37 on 18.56 million shares.

Other actives were K-Electric Limited ascended by Rs 0.16 at Rs 6.59 on 16.43 million shares and Aisha Steel Mills Limited improved by Rs 0.51 at Rs 20.01 on 14.96 million shares. The overall market capitalization was up by Rs 53.84 billion to Rs 9.514 trillion against Rs 9.460 trillion observed on last trading day.

Nestle Pakistan Limited and Philip Morris Pakistan Limited remained the top gainer by Rs 499.00 and Rs 137.89 close at Rs 11,199.00 and Rs 2,912.89 respectively, while Sanofi Aventis Limited and Lucky Cement Limited were the major losers which lost Rs 43.64 and Rs 34.59 to close at Rs 1,661.36 and Rs 711.44 respectively.