KSE index up by 187 points on institutional buying

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The Karachi Stock Exchange benchmark-100 index increased by 187.38 points to close at 22,365.72 points on Monday on institutional buying, amid positive response on the prime minister’s China visit, dealers said.



Khurram Schehzad, head of research at Arif Habib Limited, said the market took China visit of Prime Minister Nawaz Sharif positively and trade increased along with good volumes.Almost all traders, including institutions and retail clients also purchased the lots. The buying trend suggests foreign buying but their data was not available, he said. “The market is likely to remain in the positive mood as results season is lying ahead.”


The KSE-100 index increased by 187.38 points, or 0.84 percent, to close at 22,365.72 points against 22,178.34 points recorded on Friday. The index continued upward movement throughout the day with some minor curve. The highest index of the day remained at 22,397.36 points, while the lowest level of the day remained at 22,178.34 points.


The KSE-30 index also improved by 162.61 points, or 0.95 percent, to close at 17,306.67 points in the session against 17,144.06 points recorded on Friday. Trading activity was recorded mostly in the second- and third-tier stocks. Pakistan Telecommunication Company Limited (PTCL), Telecard Ltd, Pakistan International Airlines (PIA) and the National Bank of Pakistan (NBP) remained in the limelight.


Of a total of 358 active companies in the session, 203 ended in the positive territory, 129 declined and 26 companies remained unchanged. Turnover declined, while trading value and market capitalisation increased during the session. Turnover fell by 30 million shares to 325.64 million from 355.65 million shares. Trading value improved to Rs10.67 billion against Rs8.94 billion, while market capitalisation increased to Rs5.42 trillion against Rs5.39 trillion recorded in the last session.


Zafar Moti, analyst and senior member of the KSE, said that the market index continued upward movement on institutional buying in major scrips such as Engro, Pakistan Petroleum Limited and Pakistan State Oil. “The market also showed positive trend on Prime Minister Nawaz Sharif’s China visit and successful agreements. The market is heading towards 23,000-mark,” he said.


Mujtaba Barakzai, an analyst at JS Global, said the market sustained positive performance on the circular debt-related news flows as the index touched a high of 22,398 points and finally closed at 22,366 points level. “Anticipation of strong corporate results and news of a possible release of $800 million on account of privatisation proceeds of PTCL from Etisalat further boosted the sentiment,” he said.


An analyst said that the positive trend continued in the market after the International Monetary Fund (IMF) approved $5.3 billion under the extended fund facility for Pakistan for the next three years. The rally was led by oil, cement and telecom, amid hopes for energy deals, investment and improved bilateral relations with China.


“The prime minister’s visit of China grew positive sentiment in the market, as hopes for the resolution of power crisis emerged from the agreement,” he said.The bullish activity at the KSE was also a result of an increase in cement sales annual data, foreign interest in the blue-chip stocks and speculations on the early resolution of the circular debt issues in the energy sector.


Yaqoob Habib Khandwala, a small investor in the market, said the market went up by more than 1,100 points and correction is expected any time. “The market is running at the peak level and there is a need of correction for consolidation of the market,” he said. Samar Iqbal, senior manager equity sales at Topline Securities (Pvt) Ltd, said the positive statement by rating agency Moody’s helped the index post gains of around one percent. “Institutional buying in Engro Corporation and PTCL led the index as the two stocks closed at their upper limits. Lafarge Pakistan Cement with a volume of 32 million shares rallied in expectation for better profit for the last year,” she said.


An analyst at Sherman Securities said expectations of better results to be announced from the middle of the current month prompted players to continue to take positions in the market. “The Bank of Punjab and MCB Bank continued to show negative changes but with overall sentiments remaining positive towards the banking sector,” he said. Highest increase was recorded in the shares of Wyeth Pak Ltd, which rose by Rs86.25 to Rs1,811.25 per share; followed by Colgate Palmolive that improved by Rs44.99 to Rs1,899.99 per share.


Major decline was witnessed in the shares of Millat Tractors, which fell by Rs6.45 to Rs530.96 per share; followed by Abbott Lab that declined by Rs5.90 to Rs352.75 per share.Significant turnover was recorded in the stocks of Lafarge Pakistan, Karachi Electric Supply Company, Bank of Punjab, Pakistan Telecommunication Company Limited, Sui Northern Gas Pipelines Limited, Pakistan International Airlines, National Bank of Pakistan, Fauji Cement, Telecard Limited and Worldcall Telecom.


Lafarge Pakistan remained the volume leader with 31.95 million shares on an increase of 48 paisas to close at Rs9.79 per share; followed by KESC with 31.23 million shares on an increase of eight paisas to Rs7.98 per share.


The Bank of Punjab remained the third leading stock with 25.78 million shares on a decline of 76 paisas to Rs13.45 per share, PTCL’s 22.43 million shares with an increase of Rs1.23 to Rs26.30 per share, SNGPL’s 16.68 million shares with an increase of Rs1.24 to Rs26.16 per share, PIA recorded trading of 12.85 million shares with a decline of 25 paisas to Rs11.71 per share, National Bank witnessed trading of its 12.31 million shares with an increase of 94 paisas to Rs46.38 per share, Fauji Cement’s 12.07 million shares were traded with an increase of 30 paisas to Rs14.55 per share, Telecard Limited’s 11.19 million shares were traded with an increase of 16 paisas to Rs6.01 per share and 9.13 million shares of Worldcall Telecom were traded with an increase of three paisas to Rs3.25 per share.


Shares turnover in the futures market improved to 28.36 million from 20.82 million shares traded in the previous session. PTCL July futures led the market with 5.88 million shares on an increase of Rs1.24 to Rs26.48 per share; followed by Engro July futures with 4.10 million shares on an increase of Rs6.94 to Rs148.39 per share.Of 117 companies’ shares traded in the futures market, 96 advanced, while share price of 21 companies declined.

Courtesy:  The News

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