KSE index up to 23,776 points

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Foreign buying pushes KSE index up to 23,776 points

KARACHI: The Karachi Stock Exchange benchmark 100-index continue bullish trend as it gained 92.95 points to touch an all-time high of 23,776.22 points on foreign buying, dealers said on Wednesday.



Zafar Moti, an analyst and a senior member of the KSE, said profit-taking continued during the intraday session despite closure at the positive note. “Share prices of big scrips were increased by big players who wanted to sell their smaller stocks in the meantime,” he said. “Overall it was a mixed trend in the market, amid selling pressure.”


The KSE-100 index improved by 92.95 points, or 0.39 percent, to 23,776.22 points against 23,683.27 points recorded in the last session. The index witnessed intraday session profit-taking but ended at the positive note. The highest index of the day remained at 23,944.01 points, while the lowest level of the day remained at 23,683.27 points.


The KSE-30 index also increased by 71.03 points, or 0.38 percent, to close at 18,617.77 points in the session against 18,546.74 points recorded in the last session.


Trading activity was witnessed across-the-board, while oil, cement and banking stocks remained in the limelight. Of a total of 376 active companies in the session, 200 ended in the positive territory, 153 in the negative zone and 23 companies remained unchanged.


Turnover declined in the market, while trading value and market capitalisation improved. The turnover fell by 30 million shares to 303.68 million from 333.01 million shares. Trading value surged to Rs13.97 billion against Rs13.18 billion, while market capitalisation increased to Rs5.79 trillion against Rs5.77 trillion recorded in the last session.


Ahsan Mehanti, an analyst at Arif Habib Corporation, said the stocks closed yet again at an all-time high led by oil, cement and banking stocks, amid higher trades on speculations of the earning announcements. “Renewed foreign interest in the oil and banking stocks and hopes for early privatisation of the state-owned enterprises played a catalytic role in the bullish activity at the KSE, despite concerns over deferment of the new power policy,” he said.


Ovais Ahsan, an analyst at JS Global, said the market continued to sail into uncharted territory led by the banking sector as the National Bank of Pakistan (NBP), up by five percent and the MCB Bank up by 2.4 percent, gained on half-year results excitement and rumours of a potential reduction in the minimum deposit rate (from the current six percent). “The oil and gas sector was the second biggest positive contributor to the index, as Pakistan Petroleum Limited (PPL), up by 1.6 percent and Pakistan State Oil (PSO), up by 2.5 percent, gained on hefty volumes,” he said.


Fauji Fertilizer Company (FFC) down by 2.9 percent and Engro down by 1.5 percent lost ground as the prospects of a local urea price hike dimmed on the back of ongoing slump in the international prices, which was paving the way for cheaper imports.


“The prevailing results season will keep the bulls dominant though futures contract rollover this week that can keep the proceedings volatile till Friday,” Ahsan said.


Samar Iqbal, senior manager of equity sales at Topline Securities (Pvt) Ltd, said led by banking and cement stocks, the market rallied to close to yet another record high. “The National Bank closed at its upper cap with 20 million shares, while heavyweight MCB Bank also gained Rs5.56,” she said. “MLCF and FCCL also witnessed healthy volumes where MLCF gained four percent at the close.”


An analyst at Sherman Securities said that initially the market opened on a positive note backed by the activity in PSO, the Oil and Gas Development Company Limited (OGDCL) and PPL where PSO closed up by 2.6 percent, OGDCL by 0.08 percent and PPL closed up by 1.6 percent.


“The NBP continued upward movement on strong local interest to close up by five percent, whereas the Bank of Punjab (BoP) and Askari Bank Limited (AKBL) closed down three and five percent, respectively,” he said. “BoP was down as its rights shares have been received by investors, whereas AKBL was down after the loss and rights shares announcement yesterday.”


Cement sector showed an upward rally though profit-taking was witnessed once the stocks were up substantially. DG Khan Cement (DGKC) closed up by 1.2 percent, FCCL closed up by one percent and MLCF closed up by 3.6 percent.


Highest increase was recorded in the shares of Siemens Pakistan, which rose by Rs35.50 to close at Rs745.50 per share; followed by Mitchells Fruit that improved by Rs14.95 to Rs514.95 per share. Major decline was witnessed in the shares of Nestle Pakistan, which fell by Rs160 to Rs6,300 per share; followed by Liberty Mills that declined by Rs15.70 to close at Rs357.50 per share.


Significant turnover was recorded in the stocks of the Bank of Punjab, National Bank of Pakistan, Fauji Cement, Media Times Ltd, Lafarge Pakistan, Maple Leaf Cement, Karachi Electric Supply Company, Jahangir Siddiqui Co, Pakistan Telecommunication Company Ltd and DG Khan Cement.


The Bank of Punjab remained the volume leader with 35.64 million shares on a decline of 39 paisas to Rs13.64 per share; followed by the National Bank with 19.90 million shares on an increase of Rs2.85 to Rs60.01 per share.


Fauji Cement remained the third leading stock with 19.09 million shares on an increase of one paisa to Rs15.19 per share, Media Times Ltd’s 17.16 million shares with an increase of 44 paisas to Rs4.02 per share, Lafarge Pakistan’s 16.08 million shares with a decline of three paisas to Rs10.03 per share, Maple Leaf Cement recorded trading of 15.58 million shares with an increase of Rs1.01 to Rs30.78 per share, KESC witnessed trading of 13.73 million shares with an increase of 23 paisas to Rs7.39 per share, Jahangir Siddiqui Co’s 10.87 million shares were traded with an increase of 45 paisas to Rs13.06 per share, PTCL’s 9.56 million shares were traded with a decline of 89 paisas to Rs27.06 per share and 7.53 million shares of DG Khan Cement were traded with an increase of Rs1.22 to close at Rs95.86 per share.


Shares turnover in the futures market declined to 36.23 million shares from 40.63 million shares traded in the previous session. NBP August futures led the market with 5.72 million shares with increase of Rs2.89 to Rs60.85 per share; followed by FCCL August futures with 2.55 million shares at Rs15.40 per share.

Courtesy:  The News

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