KSE gains on investment in second, third-tier stocks

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KARACHI: The Karachi Stock Exchange’s (KSE) benchmark 100 index touched an all-time high of 35.40 points to 16,927.02 points on Wednesday against the previous high of 16,908.02 points recorded on December 20 on investment in the second- and third-tier stocks, said dealers.



Ahsan Mehanti, analyst at Arif Habib Corp, said that the stocks closed higher led by second- and third-tier stocks amid thin trade. Investors remained cautious as foreign interest remained low on Christmas holidays.


Higher global commodities, rising textile exports and the Economic Coordination Committee (ECC) approval for allocation of gas to the fertiliser sector affected the sentiment amid hopes for further cut in the monetary policy rate after December, besides CPI inflation target stood below 7.5 percent. “Strike call and security concerns in the city affected the trading activity at the KSE,” he said.


The KSE-100 index rose by 35.40 points, or 0.21 percent, to 16,927.34 points against 16,891.94 points recorded in the last session. The index, at one time, reached a high of 16,962.33 points, while the low level of the day was recorded at 16,888.46 points, while the KSE-30 index improved by 57.66 points, or 0.42 percent, to 13,779.02 points in the session.


The index turnover declined, while value increased in the session. Turnover was lower by 18 million shares to 113.19 million shares from 131.99 million shares, whereas value increased to Rs3.02 billion from Rs2.79 billion. Hasnain Asghar Ali, chief operating officer of Escorts Capital, said concerns over law and order situation further squeezed the volumes already on the lower side due to roll-over period. “Dividend yields and low multiples; however, attracted fresh funds, wherein, the companies having year-end in December, kept the payout sensation-led buying interest alive, quite evident mainly in the fertiliser sector,” he said.

Low-priced stocks led the turnover, wherein, reshuffling plan in Pakistan International Airlines (PIA) kept the stock on the forefront. Mixed signals from the political corridors, uncertain law and order situation kept the potential participants on the back foot, he said.


Samar Iqbal, equity dealer at Topline Securities (Pvt) Ltd, said another dull session was witnessed amid prevailing law and order situation, while investors preferred to stay on the sidelines. “Renewed buying interest was seen in the fertiliser sector amid increase in the urea off-take for the month, while interest was also seen in POL and OGDC,” she said.


Fahad Ali, analyst at JS Research, said that exploration and production along with the fertiliser sector were in the limelight as they accounted for major volumes in the blue-chips and PIA was the major contributor towards the total volumes, which closed at the upper lock.


Highest increase was recorded in the shares of Wyeth Pak Limited, which increased by Rs10.24 to Rs955 per share followed by Siemens Pakistan, which rose by Rs8 to Rs770 per share. Major decline was witnessed in the shares of Unilever Pakistan, which fell by Rs142.50 to Rs10,007.50 per share followed by Mitchells Fruit that declined by Rs18 to Rs366 per share.


Stocks that recorded significant turnover included PIA, TRG Pakistan Ltd, Maple Leaf Cement, Fauji Fertilizer Bin Qasim and Fauji Cement. PIA led the volume with a turnover of 14.90 million shares with an increase of Re1 to Rs3.99 per share, followed by TRG Pakistan Ltd with a turnover of 9.98 million shares with a decline of three paisas to Rs6.15 per share.


Shares turnover in the futures market rose to 21.45 million from 18.39 million shares traded in the previous session. Of 348 companies’ shares traded, 128 advanced, 193 declined and 27 remained unchanged.

Wyeth Pak Rs10.24
Closing Rs955.00
Siemens Pak Rs8.00
Closing Rs770.00
Khyber Tob Rs5.94
Closing Rs124.83
Unilever Pak Rs142.50
Closing Rs10,007.50
Mithchells Fruit Rs18.00
Closing Rs366.00
Pak Int Con Rs7.40
Closing Rs235.08



Courtesy:  The News


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