KSE index up by 135 points on retail buying

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The Karachi Stock Exchange benchmark 100-index increased by 135.03 points on Monday to close to an all-time high of 23,172.35 points on local retail buying, dealers said.


Zafar Moti, analyst and senior member of the KSE, said the market continued the upward trend but also witnessed some selling pressure in the last couple of hours. “The market went up by 300 points in early hours of trading but declined later by 200 points amid selling pressure,” he said.


Moti said the market ended in green zone because Attock Refinery Limited and Engro Corporation closed at the upper locks. “Institutions remained on the sidelines but the local retail investors were active in the session. Correction has started in the market, which may continue for another day, as well,” he said.


The KSE-100 index increased by 135.03 points, or 0.59 percent, to 23,172.35 points against 23,037.32 points recorded on Friday. The index continued upward rally in the morning but witnessed selling pressure in the last couple of hours. The highest index of the day remained at 23,387.83 points, while the lowest level of the day remained at 23,037.32 points.


The KSE-30 index also improved by 139.45 points, or 0.78 percent, to 18,129.55 points in the session against 17,990.10 points recorded in the last session.Trading activity was recorded across-the-board. Of a total of 360 active companies in the session, 171 ended in the positive territory, 162 in the negative zone and 27 companies remained unchanged.


Because of increased timings against Friday, turnover, trading value and market capitalisation increased in the market. Turnover surged by 80 million shares to 205.98 million from 125.40 million shares.


Trading value improved to Rs11.12 billion against Rs6.51 billion, while market capitalisation increased to Rs5.63 trillion against Rs5.59 trillion recorded in the last session.


Furqan Punjani, deputy head of research at BMA Capital, said that the market went upward in the morning but later declined by 200 points on technical correction, as there had not been major correction after market increased by 2,000 points. “Banking and fertiliser sectors remained active, while some profit-taking was witnessed in the oil sector,” he said.


Stocks that are likely to announce results soon were gainers, while those stocks with delayed results were going through profit-taking, he said.


Ahsan Mehanti, an analyst at Arif Habib Corporation, said the stocks closed at a new all-time high in the earnings announcement session at the KSE led by oil, banking and fertiliser stocks on renewed hopes for the release of $800 million as privatisation proceeds for the Pakistan Telecommunication Company Limited (PTCL), expected revision in gas wellhead prices, rising exports data and expectations of revision in the minimum deposit rates in the banking sector.


“Higher international oil prices, resumption of gas supply to Engro’s fertiliser plant and early resolution of the circular debt issues played a catalytic role in the bullish activity at the KSE,” he said.


Fahad Ali, an analyst at JS Global, said the week started off positively for the KSE, as the KSE-100 index made a high of 23,389 points. “Profit-taking was witnessed at the bourse during the session and the market closed up by only 135 points,” he said.


Engro, NBP and FFBL closed at their upper circuits due to massive interest by local and foreign investors. Exploration and production and cement remained under pressure as investors preferred to switch their positions to banks and fertilisers. “We believe that the market will remain volatile in the coming session and volumes will remain lacklustre.


An analyst at Sherman Securities said foreign flows pushed the market in the positive direction initially and the stocks such as OGDCL, PSO, PPL, NBP and HBL remained in the limelight due to the interest mainly by foreign clients. “Banking sector had a strong presence since the start of the trading session with the upper circuit of five percent on NBP,” he said. “Upper circuit was also seen in HBL at the close of the trading session.”


Most of the stocks in the power and oil also remained in the positive zone. Engro again closed up by five percent on upper circuit on supply of gas. PTCL though showed a negative change of 0.2 percent.


Highest increase was recorded in the shares of Rafhan Maize, which rose by Rs109.85 to Rs5,299.85 per share; followed by Indus Dyeing that improved by Rs20.50 to Rs568 per share.


Major decline was witnessed in the shares of Wyeth Pakistan Ltd, which fell by Rs71.50 to Rs1,728 per share; followed by Island Textile that declined by Rs33.74 to Rs641.14 per share.


SPIA remained the volume leader with 32.83 million shares on a decline of 81 paisas to Rs9.06 per share; followed by the Bank of Punjab with 11.67 million shares on an increase of 64 paisas to Rs13.81 per share.


PTCL remained the third leading stock with 10.91 million shares on a decline of one paisa to Rs24.83 per share, Maple Leaf Cement’s 7.81 million shares on an increase of 23 paisas to Rs25.33 per share, Fauji Fertilizer’s 7.15 million shares on a decline of Rs1.18 to Rs114.24 per share, National Bank recorded trading of 6.78 million shares on an increase of Rs2.49 to Rs52.41 per share, FFBL witnessed the trading of its 6.60 million shares on an increase of Rs2.02 to Rs42.48 per share, Nimir Ind Chemical’s 6.36 million shares were traded on an increase of 50 paisas to Rs4.93 per share, DG Khan Cement’s 6.29 million shares were traded with an increase of 79 paisas to Rs92.29 per share and 6.17 million shares of Fauji Cement were traded with a decline of 18 paisas to Rs14.02 per share.


Shares turnover in the futures market improved to 18.84 million shares from 11.82 million traded in the previous session. PTCL July futures led the market with 2.65 million shares with a decline of six paisas to Rs24.92 per share, followed by PPL July futures with 2.05 million shares on an increase Rs6.64 to Rs249.09 per share.

Courtesy:   The News

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