KSE index gains 200 points on across-the-board buying

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KARACHI: The Karachi Stock Exchange benchmark 100-index continued the upward momentum set before the Eid holidays and increased by 200 points on Monday on across-the-board buying, dealers said.


Zafar Moti, an analyst and a senior member of the KSE, said the market continued its upward momentum, which it established in the last working session, while it might remain directionless on Tuesday because of the market closure on Wednesday. “The Market will remain closed on Wednesday on account of the Independence Day and it is likely to remain directionless or mixed on Tuesday,” he said.


Moti said the market had again reached a high level where another correction is due, which is likely to follow the closure on Wednesday.The KSE-100 index surged by 200.80 points, or 0.86 percent, to 23,437.99 points against 23,237.19 points recorded in the last session. The index showed upward trend with minor decline at the start of the session, while ended on the positive note. The highest index of the day remained at 23,470.06 points, while the lowest level of the day was recorded at 23,191.89 points.


The KSE-30 index also increased by 151.17 points, or 0.84 percent, to close at 18,227.72 points in the session against 18,076.55 points recorded in the last session.Across-the-board buying was witnessed during the day but blue-chip stocks in the oil and banking sectors helped the index move upwards. Of a total of 378 active companies in the session, 251 ended in the positive territory, 108 in the negative zone and 19 companies remained unchanged.


Along with the index turnover, trading value and market capitalisation increased in the market. The turnover surged by 74 million shares to 249.52 million from 175.21 million shares. Trading value increased to Rs9.92 billion against Rs8.76 billion, while market capitalisation improved to Rs5.75 trillion against Rs5.71 trillion recorded in the last session.


An analyst said that the market is performing on its strong fundamentals, which were coming ahead in the shape of good financial results. Increase in the market is a routine and normal activity, as the market fundamentals remained strong despite some correction in the last few sessions, he said.


A late reaction to the tariff increase to resolve the circular debt issue and a recovery overdue after the recent fall of the market were the reasons for the upside, which was also a reason of increase in the index on the last working day before Eid holidays. “Banking, power and oil sectors contributed positively, keeping the index to close in the green zone,” he said.


Ahsan Mehanti, an analyst at Arif Habib Corporation, said the stocks closed bullish on strong earnings outlook, while rally was led by oversold stocks across-the-board on speculations ahead of the major earnings announcements next week.


Renewed foreign interest in the oil and banking stocks and easing the circular debt concerns after raise in the power tariff played a catalytic role in the bullish activity at the KSE. “Institutional support remained in the banking stocks, amid expectations for the State Bank of Pakistan (SBP) tightening the monetary policy after CPI clocked at 8.2 percent in July,” he said.


Samar Iqbal, AVP Equity Sales at Topline Securities (Pvt) Ltd, said the market continued its rally after gaining another 200 points with decent volumes, amid expectations for better June earnings. “The index heavyweight oil stocks and cement manufacturers witnessed renewed buying interest. BOP and FCCL fetched 30 percent of the total volume where both the stocks hit their upper circuit breakers,” she said.


Fahad Ali, an analyst at JS Global, said the week kicked off on a positive note with the KSE-100 index gaining over 200 points. “Interest in the oil and gas, banking and telecommunication sectors was witnessed by local and foreign investors,” he said. “Cements were in the limelight where FCCL hit its upper circuit during the day and overall closed strong. We expect the market sentiment to stay positive at these levels as the results season is in full swing.”


Highest increase was recorded in the shares of Wyeth Pakistan Ltd, which rose by Rs111.21 to Rs2,335.48 per share; followed by Rafhan Maize that improved by Rs74.95 to Rs5,199.95 per share. Major decline was witnessed in the shares of Nestle Pak, which fell by Rs50 to Rs6,250 per share; followed by Gillette Pak that declined by Rs18.71 to Rs355.67 per share.


Significant turnover was recorded in the stocks of Bank of Punjab, Fauji Cement, National Bank, Pakistan Telecommunication Company Limited, NIB Bank Limited, Lafarge Pakistan, Sui Sothern Gas Company, Maple Leaf Cement, Jahangir Siddiqui Co and Engro Corporation.


The Bank of Punjab remained the volume leader with 52.32 million shares on an increase of 94 paisas to Rs14.62 per share; followed by Fauji Cement with 23.72 million shares with an increase of Re1 to Rs15.95 per share.


National Bank remained the third leading stock with 17.30 million shares with a decline of 22 paisas to Rs57.09 per share, PTCL’s 11.07 million shares with an increase of 23 paisas to Rs27.09 per share, NIB Bank Limited’s 9.84 million shares with a decline of three paisas to Rs2.67 per share, Lafarge Pakistan recorded trading of 8.50 million shares with an increase of 50 paisas to Rs9.93 per share, SSGC witnessed trading of 7.79 million shares with an increase of Rs1.07 to Rs26.10 per share, Maple Leaf Cement’s 6.72 million shares were traded with an increase of 57 paisas to Rs30.55 per share, Jahangir Siddiqui Co’s 6.47 million shares were traded with an increase of 36 paisas to Rs12.29 per share and 6.41 million shares of Engro Corporation were traded with a increase of Rs2.71 to Rs148.77 per share.


Shares turnover in the futures market improved to 23.52 million shares from 20.18 million shares traded in the previous session. FCCL August futures led the market with six million shares with an increase of Re1 to Rs16.05 per share; followed by NBP August futures with 3.98 million shares with a decline of 20 paisas to Rs57.48 per share.

Courtesy:   The News

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