KSE index touches new high of 17,172.04 points on institutional buying

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KARACHI: The Karachi Stock Exchange’s benchmark 100-index reached an all-time high of 17,172.04 points with a surge of more than 160 points on Tuesday after government assured industries of uninterrupted gas supplies, said dealers.

Zafar Moti, senior member of the KSE said that the Economic Coordination Committee (ECC) of the Cabinet guaranteed gas supply to the corporate sector, which created positive sentiment in the market.

“Trading was witnessed in the shares of fertiliser, textile and energy sector after the government’s assurance, which invited institutional buying, as well,” he said.

The KSE-100 index increased by 167.05 points, or 0.98 percent, to 17,172.04 points against 17,004.99 points recorded on Monday. The index, at one time during the intraday session, reached the high level of 17,181.39 points, but could not sustain it. The KSE-30 index improved by 147.96 points, or 1.06 percent, to 14,044.29 points.

Both turnover and value increased in the market. The turnover increased by seven million shares to 196.81 million from 189.49 million shares, whereas value improved to Rs5.99 billion against Rs5.13 billion recorded in the last session.

Ahsan Mehanti, analyst at Arif Habib Corp, said that the stocks closed at an all-time high led by blue-chip stocks on strong earnings outlook.

Trade remained high amid speculations ahead of major earnings announcement due this week. Falling treasury yields, record earnings announcement for cement and oil sector stocks played a catalyst role in the bullish activity at the bourse, despite concerns over falling fertiliser off-take figures, he said.

Samar Iqbal, equity dealer at Topline Securities (Pvt) Ltd, said that the market closed to a new high amid renewed buying interest in anticipation of healthy December results announcement. “Telecommunication and cement sectors remained in the limelight, while Engro and Pakistan State Oil (PSO) also rose. Engro gained four percent after the ECC announced gas load management plan,” she said.

Hasnain Asghar Ali, chief operating officer at Escorts Capital, said that the banking stocks on the expectation of high cash and stock payouts led the way, while cement front-liners on results sensation along with the exploration and production and fertiliser stocks followed them.

“The rally initiated by institutional participants found support from the sideliners, thus, keeping the momentum positive throughout the session,” he said.

Highest increase was recorded in the shares of Unilever Food, which increased by Rs175 to Rs4,080 per share followed by Unilever Pakistan, which rose by Rs110.94 to Rs9,994.20 per share. Major decline was witnessed in the shares of Nestle Pakistan Ltd, which fell by Rs106.25 to Rs4,693.75 per share followed by Mitchells Fruit-XD that declined by Rs11.50 to Rs321 per share.

Stocks that recorded significant turnover included Telecard Limited, Fauji Cement, DG Khan Cement, Engro Corporation and WorldCall Telecom.

Telecard Limited was the volume leader with a turnover of 34.70 million shares as it increased by 72 paisas to Rs3.43 per share, followed by Fauji Cement with a turnover of 18.97 million shares as it declined by 17 paisas to Rs7.95 per share.

Shares turnover in the futures market increased to 13.83 million from 8.98 million shares traded in the previous session. Of 360 companies’ shares traded, 184 advanced, 154 declined and 22 remained unchanged.

Unilever Food Rs175.00

Closing Rs4,080.00

 

Unilever Pak Rs110.94

Closing Rs9,994.20

 

Colgate Palm Rs68.50

Closing Rs1,446.00

 

Nestle Pak Rs106.25

Closing Rs4,693.75

 

Miteje;;s Fruit Rs11.50

Closing Rs321.00

 

Siemens Engg Rs7.50

Closing Rs640.00

 

Courtesy: The News

 


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