KSE index climbs to all-time high of 16,251 points

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KARACHI: The Karachi Stock Exchange’s (KSE) benchmark 100-index surged to an all-time high of 16,251 points with 12-week high turnover of 246 million shares on Monday due to significant across-the-board buying, said dealers on Monday.
Market capitalisation also surged to the record high of Rs4,056 billion with an addition of Rs13 billion, they added.“The volumetric buying in cement and textile stocks played a significant role in taking the index to the all-time high after profit margins of such stocks improved,” said Farid Alam, chief executive officer at AKD Securities.

The KSE-100 index surged by 53.64 points, or 0.33 percent, to 16,251.38 points. The closing replaced the previous all-time high of 16,243.27 points recorded on November 8.The index closed just 15 points lower from the intraday high of 16,266.23 points. In the previous two sessions, it had already increased by approximately 77 points.

The KSE-30 index increased by 49.28 points, or 0.37 percent, to 13,233.37 points in the session.Alam said that increased export of Pakistan’s yarn to China improved profit margins of the spinning mills. “The price of cotton remained stable in Pakistan but the price of yarn continued to multiple on the back of significant demand of it from China.”

Similarly, the profit margins of cement also improved after the price of coal declined in the international markets, he said.“The textile and cement stocks are seen continuously driving the market in the next couple of months,” he said, “Based on the assessment of the KSE-30 index, the market my increase afresh 10 percent in the current round of bull-run.” He said that Pakistan Telecommunication Company Limited (PTCL) also invited renewed buying on the news that parties in the case of International Clearing House for the telecom sector may settle the issue out of court. Hasnain Asghar Ali, chief operating officer at Escorts Capital, said that the fertiliser stocks also invited renewed buying after they remained subject to profit-selling throughout last week. “Government’s consideration to restore supply of gas to the fertiliser manufacturers helped relevant stocks invited renewed buying.”

Samar Iqbal, an equity dealer at Topline Securities, said that LOTPTA also came in the limelight after Asian PTA producers proposed to link the PTA price with paraxylene to improve their margins. Stocks that played a leading role in driving the index up included PTCL, Engro Corporation, Dawood Hercules and Oil and Gas Development Company played a leading role in driving the index to a fresh all-time high.

Stocks that well support the drive with significant turnovers included Azgard Nine, Lotte PakPTA, Lucky Cement-XD, Nishat Mills Limited-XD, Bank Alfalah, and Nishat (Chunian)-XDXB. Maple Leaf Cement was the volume leader with a turnover of 31.27 million shares as it closed at Rs13.02 with an increase of 98 paisas followed by Azgard Nine with a turnover of 26.51 million shares as it closed at Rs8.73 with a gain of 70 paisas.

Shares turnover in the futures market improved to 9.88 million shares from 7.58 million shares traded in the previous session. Of a total of 369 companies’ stocks traded, 245 advanced, 100 declined and 24 remained unchanged.


Courtesy: The News

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