KSE surges by 103.05 points on SBP rate cut expectation

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KARACHI: The Karachi Stock Exchange’s (KSE) benchmark 100-index increased by 103.05 points to a new high of 16,527.08 points on Thursday on strong valuations and expectations of a decline in discount rate ahead of the State Bank of Pakistan’s monetary policy announcement next month, while both turnover and value declined, said dealers. Ahsan Mehanti, an analyst at Arif Habib Corporation said that expectations for decline in CPI Inflation, renewed foreign interest, higher global stocks and commodities played a catalyst role in the bullish sentiments at KSE, despite concerns for rising circular debt of the power sector and falling rupee-dollar parity. |

”The market went up for a few sessions and there were signs of corrections as investors were trading with concern, which reduced the value,” he said. “However, banks have also entered into increased trading, which is a positive sign and there are speculations about decline in the discount rate in next month’s monetary policy, which has increased interest in trade.”

The KSE-100 index rose by 103.05 points or 0.63 percent to 16,527.08 points against 16,424.03 points recorded in the last session. The index, at one time, reached a high level of 16,556.29 points during intraday session, while low level of the day was recorded at 16,424.03 points. Meanwhile, the KSE-30 index increased by 80.20 points or 0.60 percent to 13,381.21 points in the session.
Despite the increase in major indexes, the turnover was low by 57 million shares to 255.98 million shares from 312.74 million shares, whereas the value also declined to Rs6.56 billion from Rs7.61 billion. Hasnain Asghar Ali, COO Escorts Capital, said that the values on the benchmark improved further, wherein the financial sector stocks led the turnover, and frontline banking stocks took the lead.


Post judgment of the LHC instructing building of the “Kalabagh Dam (subject to consensus among the provincial governments) did infuse confidence of the market participants in the cement sector stocks, while volume generation was led by low priced stocks from the textile sector,” he said.

Samar Iqbal, an equity dealer at Topline Securities (Pvt) Ltd, said that the main thrust came from Unilever followed by interest in UBL and MCB. “Profit taking was witnessed in cement stocks, which have been increasing since the last few sessions,” she said. The highest increase was recorded in the shares of Unilever Pak, which increased by Rs509.25 to Rs10,694.25 per share followed by Unilever Food, which rose by Rs210 to Rs4,410 per share. Major decline was noted in the shares of Mitchells Fruit, which fell by Rs16 to Rs350 per share followed by Exide (Pak) that declined by Rs15.14 to Rs314.86 per share.

Stocks that recorded significant turnover included Jahangir Siddiui Co, DGK Cement, Fauji Cement, Maple Leaf Cement and Byco Petroleum. Jahangir Siddiui Co was the volume leader with 28.09 million shares with an increase of 97 paisas to Rs16.65 per share, followed by DGK Cement with 19.38 million shares with decline of 94 paisas to Rs54.20 per share.

Shares turnover in the futures market improved to 28.43 million shares from 24.28 million shares traded in the previous session. Of a total of 382 companies’ stocks traded, 173 advanced, 182 declined and 27 remained unchanged.

Unilever Pak Rs509.25
Closing Rs10,694.25

Unilever Foods Rs210.00
Closing Rs4,410.00

Colgate Palm Rs65.00
Closing Rs31,365.00

Mitehells Fruit Rs16.00
Closing Rs350.00

Exide Pak Rs15.14
Closing Rs314.86


Sunrays Tex Rs9.05
Closing Rs171.95

 

Courtesy: The News


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