Karachi – The Pakistan Stock Exchange (PSX) closed positively on Wednesday, with the KSE-100 index ending at 180,311.22, surging by 464.53 points. The overall momentum of the index was limited as the big stocks in different sectors showed some mixed performance, despite the overall improvement in the market.
At the start of trading, the KSE-100 index was at 179,931.01 points, while during trading, the index reached a high of 180,901.27 points. The minimum price recorded on the market was 179,920.10 points. At the end of the day, the index was still above the psychological level of 180 thousand points.
The data showed that the KSE-100 has gained 0.26 percent on a daily basis. The volume of trading in the index constituents was at 226.16 million shares. The KSE-100 has appreciated by 0.01% YTD and 3.59% C/Y.
Some leading companies did their bit to boost the index’s gains. The top positive contributors to the polarisers were Pakistan Oil Fields (POL) and Marri Petroleum (MARI) with 107.95 and 104.46 points, respectively. The index was boosted by gains of 92.19 points at Habib Bank (HBL), 66.30 points at Hub Power (HUBC) and 39.73 points at Bank Al Habib (BAHL).
The overall gain of the index was capped, however, by losses at some of the biggest firms. Maple Leaf Cement (MEBL) – 134.78 points made the biggest negative dent as it grew. The biggest dent was 134.78 points when Maple Leaf Cement (MEBL) grew. Engro Fertilisers (EFERT) gained 42.01 points, OGDC (OGDC) 31.21 points, and United Bank (UBL) 26.93 points, while Fauji Fertiliser Company (FFC) contributed 15.93 points.
The internal distribution of market activity suggests that the upturn in the index was not general, as an important element of the rise was due to the performance of selected large stocks. In particular, the positive contribution of POL, MARI, HBL and HUBC was more than enough to keep the index above the 180 thousand level, while the price decline of MEBl and other large stocks did not allow the index to keep its momentum.
The KMI-30 index rose slightly on the same day too. The KMI-30 index opened at 253,226.50 points and after touching a high of 254,300.61, it reached a low of 252,492.13. At the close of business, the KMI-30 index closed at 253,344.42 points, up 336.70 points, or 0.13%.
Some stocks also had a positive influence on the KMI-30. Murree Petroleum (MARI) made the biggest positive contribution of 298.39 points, while Hub Power (HUBC) made a positive contribution of 189.39 points, Maple Leaf Cement (MLCF) made a positive contribution of 99.85 points, Ghani Global (GHNI) made a positive contribution of 65.06 points and Sui Northern Gas Pipelines (SNGP) made a positive contribution of 60.39 points.
On the contrary, Maple Leaf Bank (MEBl) made the biggest negative contribution of 385.02 points on the KMI-30. Engro Fertilisers (EFERT) appreciated by 120 points, OGDC (OGDC) appreciated by 89.15 points, the Fauji Fertiliser Company (FFC) depreciated by 30.76 points, while the National Refinery (NRL) appreciated by 13.77 points.
In general, the trading volume on August 12 signalled that buying interest was present but there was a lack of uniformity in investor sentiment. The index rose on buying some large and significant stocks but was held back by the selling of some prominent companies.
Though the KSE-100 closing above 180 thousand points is definitely a significant technical level for the market, it is too early to conclude that the one-day rally is a game-changer for the markets’ long-term trend. Other factors such as major companies’ earnings, local economic data, investor sentiment and overall market liquidity will determine the direction of the market in the upcoming sessions.
During the prevailing conditions, investors will need to focus on the performance of individual companies and sectors, not the index of the day, as the latest figures reveal the share performance is by no means consistent amid the rally in the stock market.
