KSE index rises to 19,256.70 points on profit-taking

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Karachi Stock Exchange’s (KSE) benchmark 100-index increased by 30.07 points Monday on profit-taking, mainly in energy stocks, dealers said.

Zafar Moti, an analyst and senior member of the KSE, said that the market remained positive by half day, after which it recorded selling pressure, mostly in energy stocks. “Traders are still uncertain about the elections, thus they booked profits when the market in the intraday session surged by more than 200 points,” he said. “Giants, such as the Oil and Gas Development Company (OGDC) and Pakistan State Oil (PSO), witnessed dips in the second half.”


The KSE-100 index rose by 30.07 points or 0.16 percent to 19,256.70 points against 19,226.63 points recorded in the last session. The index, at one time during the intraday session, surged by more than 200 points and reached a record high level of 19,445.27 points, while the lowest level of the day was recorded at 19,220.54 points.


The KSE-30 index also improved by 16.90 points or 0.11 percent to 14,814.62 points in the session against 14,797.72 points recorded in the last session.


Trading was once again witnessed in second and third-tier stocks, while a few blue-chip stocks also recorded gains. Of a total of 393 companies’ stocks traded, 189 advanced, 189 declined and 15 remained unchanged.


Turnover, trading value and market capitalisation improved slightly in the market. The turnover increased by one million shares to 137.24 million shares from 136.24 million shares, while the value increased to Rs7.08 billion against Rs6.70 billion. Market capitalisation improved to Rs4.77 trillion against Rs4.75 trillion recorded in the last session.


Engro Corporation attracted investors, who believe that the new government might make concerted efforts to resolve gas issues. Pakistan Petroleum Limited (PPL) also remained the hottest stock of the day on institutional buying. Fauji Cement Company Limited remained in the limelight as investors accumulated shares after exceptional last quarter results.


Ahsan Mehanti, an analyst at Arif Habib Corp, said that the stocks closed yet again at an all-time high despite profit-taking witnessed in the session. “Corporate earnings announcements ended, which is why investors booked profits. This is a matter of routine,” he said. However, Mehanti added that some investors played on election speculation that stabilised the market, which had declined at one point during the intraday session. “Despite the bulls run, volumes remained thin,” he said.


Mehanti said that late session profit-taking led the market to close lower, despite institutional support based on lower CPI inflation for April, renewed foreign interest and declining political uncertainty. However, he added that security concerns also remained a part of market sentiments.


Mujtaba Barakzai, an analyst at JS Global, said that the KSE-100 index made a new intraday high of 19,444 points fueled by fresh buying in PPL (with the news of expansion strategies) and foreign interest in OGDC, which later witnessed selling pressure. Fauji Fertilizer Company, with better dividend yield and Engro on the basis of gas allocation, were also investors’ favourites.


However, the rally could not sustain its morning session momentum as it managed to close at the 19,257-level. “Investors are cautious ahead of the upcoming elections,” said Barakzai. Samar Iqbal, senior manager equity sales at Topline Securities (Pvt) Ltd, said that the market opened positively and rallied by more than 200 points in anticipation that elections would bring positive news for the economy. “However, afterward profit-taking was witnessed and the market ended on minor gains,” she said.


Analysts are of the view that the market had increased above its capacity and correction is likely to enter the market any time, with the index likely to decline by as many as 400 points in the coming sessions. Profit-taking reduced the market index, which increased above 200 points, below the starting index at one time. However, some investors did buying that kept the market above the starting point.


An analyst at KASB Research said that although the market witnessed ups and downs, it stood above the 19,200-level and it was moving between 19,500 and 19,700 points. “Volumes in the last session remained low, but it is hoped that the volumes would start going up along with the index as well,” he said. The highest increase was recorded in the shares of Nestle Pak XD, which rose by Rs167.50 to Rs7,150.00 per share, followed by Colgate Palmolive that improved by Rs80.00 to Rs2,090.00 per share. Major decline was noted in the shares of Bata (Pak) XD, which fell by Rs100.00 to Rs2,150.00 per share, followed by Wyeth Pak Ltd that declined by Rs65.42 to Rs1,632.58 per share.


Significant turnover was recorded in the stocks of Fauji Cement, Inter Steel Ltd, Engro Corporation, TRG Pakistan Ltd, Dawood Hercules, Pakistan Telecommunication Company Limited (PTCL), PPL, Lotte Chemical, Maple Leaf Cement and Dewan Motors.


Fauji Cement remained the volume leader with 11.04 million shares and an increase of four paisas to Rs9.01 per share, followed by Inter Steel Ltd with 8.37 million shares and an increase of 88 paisas to Rs17.48 per share.


Engro Corporation remained the third leading stock with 7.87 million shares and a rise of Rs1.50 to Rs135.07 per share; TRG Pakistan Ltd noted trading of 5.40 million shares with a decline of eight paisas to Rs9.94 per share; Dawood Hercules of 4.77 million shares with an increase of 77 paisas to Rs59.02 per share; PTCL of 4.50 million shares with an increase of 16 paisas to 17.87 per share, PPL of 4.42 million shares with an increase of Rs4.52 to Rs194.98 per share and Lotte Chemical of 4.15 million shares with a decline of 15 paisas to Rs7.55 per share. Further, Maple Leaf Cement’s trading of 4.07 million shares fell by 20 paisas to Rs18.50 per share and 3.79 million shares of Dewan Motors were traded with an increase of 25 paisas to Rs3.35 per share.


Shares’ turnover in the futures market fell to 11.23 million shares from 11.40 million shares traded in the previous session. Engro May futures led the market with 3.26 million shares and an increase of Rs1.53 to Rs136.03 per share, followed by Dawood Hercules May futures with 1.73 million shares and a rise of 66 paisas to Rs59.11 per share. Out of 132 companies’ shares traded in the futures market, 63 recorded gains, 67 declined and two remained unchanged.

Courtesy:  The News

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