KSE index up by 143 points on easing political uncertainty

Attention: open in a new window. PDFPrintE-mail

KARACHI: The Karachi Stock Exchange’s benchmark 100-index improved by 143.11 points on Tuesday to 16,645.76 points amid political unrest in the country, said dealers.

Ahsan Mehanti, analyst at Arif Habib Corp, said that the stocks closed higher led by blue-chips across-the-board amid thin trade on easing political uncertainty after political leader were pardoned by the Supreme Court and investors hope for early resolution of the political issues.


Strong valuations in the banking and oil sector stocks, rising cement sales data, stronger fertiliser sales data, higher global commodities and rising textile exports to the European Union (EU) played a catalyst role in the bullish sentiment in the oversold market amid concerns over the circular debt crisis, he said.


The KSE-100 index surged by 143.11 points, or 0.87 percent, to 16,645.76 points against 16,502.65 points recorded in the last session. The KSE-30 index improved by 117.81 points, or 0.87 percent, to 13,601.52 points in the session.


Contrary to the index, turnover declined, while value posted minor gains in the market. The turnover fell by nine million shares to 86.78 million shares from 95.84 million shares, whereas value improved to Rs2.68 billion against Rs2.40 billion recorded in the last session.

Hasnain Asghar Ali, chief operating officer at Escorts Capital, said that despite unclear political and economic horizon, the presence of values at the local equities kept the funds inflow intact, wherein dividend yields and low multiples kept the liquidity in search of opportunities, thereby, allowing the benchmark to maintain positive posture across the session.


The visiting delegation of the International Monetary Fund (IMF) led to various speculations linked to the purpose of visit that included assessment of financial strength regarding repayment of loans, coupled with volatility linked to the “million march” restricted the intraday traders as reflective in the overall volume situation that struggled to reach 100 million mark, he said.


Samar Iqbal, equity dealer at Topline Securities (Pvt) Ltd, said as the political tension eased off, market rebounded by 143 points mainly supported by heavyweight Oil and Gas Development Company Limited (OGDCL) and the MCB Bank. “However, investors continued to remain wary from the uncertain political path ahead as volumes fell to 47-week low and remained confined to mid-cap stocks,” she said.


Khalil Usmani, analyst at JS Research, said that investors preferred higher dividend yield items ahead of the result season. “We recommend investors to adopt a cautious approach due to an uncertain political scenario and prefer stocks with strong earnings growth and high dividend yields,” he said. Highest increase was recorded in the shares of Millat Tractors Ltd, which increased by Rs28.75 to Rs603.75 per share followed by Unilever Pakistan, which rose by Rs25.01 to Rs10,000 per share.


Major decline was witnessed in the shares of Siemens Pakistan-XD, which fell by Rs7.10 to Rs615 per share followed by Pak Int Cont SD that declined by Rs5.62 to Rs215.19 per share.


Stocks that recorded significant turnover included Maple Leaf Cement, Askari Bank, Byco Petroleum, Jahangir Siddiqui Co and Nishat (Chunian).


Maple Leaf Cement was the volume leader with a turnover of 19.97 million shares with an increase of 83 paisas to close at Rs15.50 per share, followed by Askari Bank with a turnover of 6.51 million shares with an improvement of Re1 to finish at Rs18.84 per share.


Shares turnover in the futures market fell to 5.07 million from 5.85 million shares traded in the previous session. Of 319 companies’ shares traded, 237 advanced, 58 declined and 24 remained unchanged.


Millat Tractor Rs28.75

Closing Rs603.75

Unilever Pak Rs25.01

Closing Rs10,000.00

Sapphire Tex Rs9.22

Closing Rs230.00

Siemens Engg Rs7.10

Closing Rs615.00

Pak Int Cont Rs5.62

Closing Rs215.19

JDW Sugar Rs5.43

Closing Rs103.29

Courtesy:  The News

Forex open Market rates & comments Archive

Login Form