KSE index breaks all records to close at 16,650.15 points

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KARACHI: The Karachi share market registered fresh high on Tuesday, observing renewed foreign interest in leading oil and gas and banking stocks as low inflation numbers for November increased expectation for another policy rate cut, said dealers.

“The index closed at the highest level lead by cement, oil and banking stocks amid speculations for the rate cut ahead of the policy rate announcement by the State Bank of Pakistan due this month after November CPI inflation stood at record low of 6.93 percent,” said Ahsan Mehanti at Arif Habib Corp.

The KSE-100 index gained 112.17 points, or 0.68 percent, to close at 16,650.15 points. The KSE-30 index gained 100.54 points, or 0.74 percent, to end at 13,487.64 points.

Mehanti said that the expectations for the release of $400 million under the Coalition Support Fund after improvement in the Pak-US ties, higher local cement prices and the suggestions of the Economic Coordination Committee (ECC) of the Cabinet for reduction in the sales tax, goods declaration for the fertiliser sector and renewed foreign interest in the blue-chip stocks in the oil sector played a catalyst role in the positive sentiment at the bourse.

Samar Iqbal, a dealer at Topline Securities, said that led by hi-cap stocks, the Karachi bourse saw new high. Big market cap stocks such as the Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL) and the MCB Bank gained due to active institutional support.

“Retail investors were seen active in Jahangir Siddiqui Company Limited (JSCL), Maple Leaf Cement Factory (MLCF) and Karachi Electric Supply Company (KESC).

Low inflation numbers for November increased the expectation of another policy rate cut, which would force investors to take new positions,” said Iqbal.

Hasnain Asghar Ali at Escort Capital said that fresh flows in the oil and gas marketing and exploration stocks led the benchmark on the record high, thus, keeping low volumes led adjustment away for the day.
“As the monetary policy get closer the low-priced stocks, depending on relaxation, are likely to stay range-bound; however, the year-end announcements and various other factors are likely to invite fresh flows in the frontline stocks,” said Ali.

Shakir Padela at JS Global said that the gains mostly came from the oil and gas sector with OGDCL and PPL gaining 1.9 percent and 0.8 percent, respectively. In the baking sector, MCB Bank gained 1.6 percent on the rumours of foreign interest in the scrip.

“Market participants remained cautious ahead of the monetary policy announcement next week with banks and cement stocks trading in a narrow range,” he said.

The ready market volumes stood at 193.049 million shares as compared to 195.592 million shares in the last trading session. Highest volumes were witnessed in JSCL with a turnover of 23.314 million shares as the scrip gained 89 paisas to close at Rs18.47 followed by Maple Leaf Cement with 19.676 million shares. It gained eight paisas to end at Rs14.52. KESC with a turnover of 13.979 million shares lost 24 paisas to finish at Rs6.66.

Nestle Pak Rs221.15
Closing Rs4,644.15

Island Tex Rs41.27
Closing Rs1,040.00

Colgate Palm Rs35.00
Closing Rs1,400.00

Unilever Pak Rs190.96
Closing Rs9,805.00

Bata Pak Rs10.33
Closing Rs1,649.67

Millat Tractor Rs6.58
Closing Rs546.07


Courtesy: The News

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