Financial stocks lead rally on PSX market

Pakistan equities Wednesday closed in green with benchmark KSE-100 Index rallying 322 points to 40,279 points level.

Market kicked-off sideways and continued along Tuesday’s declining trend making an intra-day low of 269 points however market picked momentum on the back of gains in financials.

The KSE-100 index turned positive Wednesday after five negative trading sessions mainly on earnings announcements of banking stocks. Commercial banks and Exploration and Productions (E&Ps) contributed most of the gains in the day’s session, said an equity analyst at Ismail Iqbal Securities.

Market had a dull start due to cautiousness possibly due the regional instability between Pakistan and India. However, Banks turned the sentiment around today as three major heavyweights of the sector, i.e. HBL, MCB and UBL announced their results.

United Bank Limited (UBL) gained 4.88 percent, Habib Bank Limited (HBL) gained 1.36 percent as both announced their 2018 result posting EPS of Rs12.65 / Rs 8.22 beside announcing DPS of Rs 3 / Rs 1.25 much above the street expectations meanwhile MCB Bank Limited (MCB) gained 0.44 percent following the announcement of its 2018 result posting EPS of PKR17.17 and announced a DPS of Rs 4/share in line with street expectations.

Moreover Energy stocks followed suit and pushed the Index up with Oil and Gas Development Company (OGDC) gaining 1.92 percent and Pakistan Oilfields Limited (POL) gaining 1.98 percent collectively contributing 65 points in KSE100 Index. Kot Addu Power Company (KAPCO) losing 5 percent closed at its lower circuit over no dividend in spite of improved earnings clocking in at Rs 6.68 in second quarter FY19.

Muhammad Arbash, an equity analyst at Elixir Research, expects market to maintain its upward momentum in the backdrop of expected improved flows from both local and foreign investors.

February 21st  2019.

DailyTimes, 21 Feb, 2019

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