Market watch: Late buying helps bourse recover from early blows

KARACHI: The stock market underwent a miraculous recovery just before close on Wednesday, avoiding a loss of over 500 points, with DG Khan Cement’s positive earnings announcement attracting massive buying.

As soon as the trading began in the morning, the benchmark KSE-100 index dropped because of a lack of investor interest and political uncertainty.

After touching the day’s low at 40,224.20 points, it skyrocketed to a high of 40,872.48 points before settling at 40,733.45, marginally above previous day’s close with a rise of 8.49 points or 0.02%

Elixir Securities, in its report, stated Pakistan equities remained steady after recouping losses on late buying in index names primarily cement stocks.

Market watch: KSE-100 succumbs to profit-taking, sheds some value

“As the day began, the market traded dull with the benchmark KSE-100 index on a steady sinking path, testing lows at 40,225 (down 1.23%) on anxiety over domestic politics and no major interest,” the report said.

DG Khan Cement’s (DGKC, +3.5%) surprise earnings turned the tide and helped swing the mood with Lucky Cement (+4.2%) also attracting fresh flows and hitting the upper price limit in intra-day trading.

Investors welcomed the fresh wave as nearly half the turnover came in the last 30 minutes and the wider market pushed higher with momentum.

“While key earnings announcements due tomorrow (Thursday) may attract selective attention, investors will keenly follow court proceedings where former PM Nawaz Sharif will likely be indicted on corruption charges, which will keep domestic politics in the limelight in the days ahead,” it added.

Market watch: Stocks bounce back on bailout news, index rises past 40,000

Overall, trading volumes fell to 138 million shares compared with Tuesday’s tally of 166 million.

Shares of 370 companies were traded. At the end of the day, 121 stocks closed higher, 229 declined while 20 remained unchanged. The value of shares traded during the day was Rs6.18 billion.

Engro Polymer was the volume leader with 21.2 million shares, gaining Rs1.58 to close at Rs34.33. It was followed by Azgard Nine with 8.9 million shares, losing Rs0.19 to close at Rs12.53 and Aisha Steel Mills with 8.8 million shares, losing Rs0.07 to close at Rs18.09.

Foreign institutional investors were net sellers of Rs9.7 million during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.

The post Market watch: Late buying helps bourse recover from early blows appeared first on The Express Tribune.

from The Express Tribune http://ift.tt/2yq8EBf