PSX ends positive amid volatile proceedings
KARACHI: Pakistan Stock Exchange (PSX) extended its recovery from steep losses of January on Tuesday to end up with gains. Volatility was back at the bourse as indexes off loaded early gains to end up under the psychological barrier of 32,000.
Investors remained vigilant after crude oil ended its four-day rally and reversed gains. Crude oil prices dropped after manufacturing sector of world’s second largest economy, China, contracted, adding to worry over worsening demand in the already oversupplied market.
The benchmark KSE-100 index dived from high of 296.01 points to close up 82.46 points at 31,960.61. KMI 30 scrapped the 326.25 points accumulated in the session and a further 49.73 points to end at 54,439.62. KSE All Share declined 35.98 points to 22,309.90 after gathering 125.92 points earlier.
Total volumes for the day stood at 144.366 million, an improvement of 7.40% from last session. Cement Sector led the chart with 28.786 million shares exchanged. The higher volume could be attributed to the release of cement dispatch figures by the All Pakistan Cement Manufacturers Association (APCMA) for month of January. As exports continued to dwindle, local demand helped manufacturers make up for the loss in volume of sales. The industry contracted 11% MoM after exports fell 15% MoM and local demand was down 11%. For 7MFY16, the industry has managed to grow 6% despite 25% YoY sink in exports, thanks to 15% higher local demand. Kohat Cement Limited (KOHC +0.87%) recorded an overall 74.70% YoY raise in dispatches followed by Cherat Cement Company Limited (CHCC -0.05%) up 28.60% YoY and Dera Ghazi Khan Cement Company Limtied (DGKC +1.07%) up 14.40%.
Commercial banks enjoyed another day of healthy volumes post announcement of monetary policy and ahead of the result session. Samba Bank Limited (SBL +14.43%) was top gainer for the day with Bank of Punjab (BOP -1.78%) leading the volume table. Habib Bank Limited (HBL) clinched 2.74%, United Bank Limited (UBL) 1.34% and MCB Bank Limited (MCB) 0.38%.
After a while of calm, Tuesday proved to be another tough day for oil and gas exploration sector. The sector traced the downfall in crude oil prices and Pakistan Petroleum Limited (PPL) shed 2.73%, Oil and Gas Development Company (OGDC) shred 2.67% and Pakistan Oilfields Limited (POL) 2.26%.
Pharmaceutical sector demonstrated mixed sentiments after a rally in the last session. The Pakistan Pharmaceutical Manufacturers’ Association (PPMA) chairman had recently voiced concerns over the government policies hurting exports and overall growth of the industry. Highnoon Laboratries Limited (HINOON) laid off 2.04% and Glaxo SmithKline Pakistan Limited (GLAXO) was down 1.43%.