KSE index up 42.91 points on likely cut in discount rate

Attention: open in a new window. PDFPrintE-mail

KARACHI: The Karachi Stock Exchange’s (KSE) benchmark 100-index increased by 42.91 points to 16,744.60 points on Wednesday on the hopes of cut in the discount rate in the upcoming monetary policy, said dealers.

The stocks closed higher with investors’ interest across leading sectors on the hope of a rate cut in the monetary policy announcement on December 14, said Ahsan Mehanti, an analyst at Arif Habib Corp.

Expectations for the release of $600 million under the Coalition Support Fund, higher global commodities, higher cement sales data, rising urea and DAP off-take data and improved textile sector valuations on the export relaxations given by the European Union played a catalyst role in the bullish sentiment, despite concerns over fall in the rupee-dollar parity, affecting foreign inflows at the KSE, he said.

The KSE-100 index improved by 42.91 points, or 0.26 percent, to 16,744.60 points against 16,701.69 points recorded in the last session. The index, at one time, reached a high of 16,811.07 points but could not sustain it, while the low level was recorded at 16,701.69 points. The KSE-30 index rose by 8.21 points, or 0.06 percent, to 13,550.23 points in the session.

Contrary to the index, turnover and value declined in the market. Turnover declined by 15 million shares to 112.79 million shares from 127.04 million shares, whereas value fell to Rs3.24 billion against Rs3.48 billion recorded in the last session.

Hasnain Asghar Ali, chief operating officer of Escorts Capital, said that buying interest was witnessed in the market and the situation will continue throughout the week. “Fertiliser and cement sectors witnessed positive trend, which will continue,” he said. “However, the market position will become visible after the monetary policy announcement on Friday.”

Samar Iqbal, an equity dealer at Topline Securities (Pvt) Ltd, said the market recovered on the expectations that the interest rate would be reduced in the upcoming monetary policy, while heavyweight Oil and Gas Development Company Limited (OGDCL) increased after the Economic Coordination Committee (ECC) of the Cabinet approved new pricing of Qadirpur. “Large cement companies such as DG Khan Cement and Lucky also witnessed some buying, LOTPTA again remained in the limelight in anticipation that the government may provide them duty protection,” she said. Highest increase was recorded in the shares of Nestle Pakistan Ltd, which increased by Rs100 to Rs4,900 per share followed by Unilever Food, which rose by Rs62 to Rs4,200 per share. Major decline was witnessed in the shares of Pak Services, which fell by Rs9.35 to Rs177.65 per share followed by Exide (Pak) that declined by Rs8.67 to Rs293.42 per share.

Stocks that recorded significant turnover included Lotte Pak PTA, Jahangir Siddiqui Co, Byco Petroleum, Maple Leaf Cement, Colony Sugar Mills and PTCL. Lotte Pak PTA was the volume leader with a turnover of 11.44 million shares as it gained 20 paisas to close at Rs7.85 per share; followed by Jahangir Siddiqui Co with a turnover of 6.38 million shares as it registered a decline of 17 paisas to end at Rs17.09 per share.

Shares turnover in the futures market fell to 6.78 million shares from 6.84 million shares traded in the previous session. Of 359 companies’ shares traded, 178 advanced, 161 declined and 20 remained unchanged.

Nestle Pak Rs100.00
Closing Rs4,900.00

Unilever Food Rs62.00
Closing Rs4,200.00

Pak Ind Con Rs11.84
Closing Rs251.72

Pak Services Rs9.35
Closing Rs177.65

Exide Pak Rs8.67
Closing Rs293.42

Blessed Tex Rs5.25
Closing Rs114.75

 

Courtesy: The News


Forex open Market rates & comments Archive

Login Form