KSE surges by 57.66 points on CSF expectations

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KARACHI: The Karachi Stock Exchange’s (KSE) benchmark 100-index surged by 57.66 points to 16,858.68 points on Tuesday amid expectations of receiving the Coalition Support Fund, said dealers. The previous peak of 16,845.09 points was recorded on December 14, 2012. COO Escorts Capital, Hasnain Asghar Ali, said the likely release of $700 million in funds and improvement in the value of the rupee came as a confidence building measure, allowing the benchmark to consolidate further. Despite restricted activity, the benchmark managed yet another historic session, registering the highest ever closing of 16,858 points after attaining the highest level of 16,912 points during intra-day trade.

The KSE-100 index rose by 0.34 percent to 16,858.68 points against 16,801.03 points recorded in the last session. The index, at one time, reached 16,912.52 points during the intraday session, while the lowest level of the day was recorded at 16,801.03 points. The KSE-30 index improved by 70.79 points or 0.52 percent to 13,680.85 points in the session.

Along with the index, turnover and value increased in the session. Turnover was higher by 27 million shares – from 91.58 million shares to 118.64 million shares – whereas value also increased from Rs2.51 billion to Rs3.70 billion.

Led by value buying in the frontline, wherein fertiliser, banking and cement stocks led the gains, while OGDC on relatively low volumes kept the benchmark in a positive zone during the session, political turbulence kept the turnover on the lower side. Moreover, the deteriorating law and order situation kept the day traders cautious, disallowing any major excitement during the trading day, said Asghar Ali.

Ahsan Mehanti, an analyst at Arif Habib Corp, said stocks closed on a positive note with investors’ interest in banking, fertiliser and oil stocks after unconfirmed reports of the release of $700 million by the US.

Shrinkage in trade deficit, expected action of SBP against rupee fall against dollar, higher home remittances and rising global stocks influence the surge despite security concerns, said Mehanti.

Samar Iqbal, an equity dealer at Topline Securities (Pvt) Ltd, said that the national saving rate would soon be reduced; fresh buying was witnessed at the Karachi Stock Exchange. “Fertiliser stocks remained in the limelight after news of better than expected sales during the month of December. Institutional buying was again seen in MCB while some profit taking was seen in Hubco,” she said.

Mujtaba Barakzai, an analyst at JS Global, said, “Investors traded actively in the cement sector after the cut in discount rate by 50 basis point.“

The highest increase was recorded in the shares of Wyeth Pak Limited, which increased by Rs44.76 to Rs944.76 per share, followed by Khyber Tobacco XD, which rose by Rs4.89 to Rs102.71 per share. A major decline was noted in the shares of Bata (Pak), which fell by Rs74.50 to Rs1,415.50 per share, followed by Colgate Palmolive that declined by Rs27 to Rs1,400 per share.

Stocks that recorded significant turnover included Hub Power Co, Jahangir Siddiqui Co, Byco Petroleum, DGK Cement and Maple Leaf Cement. Hub Power Co was the volume leader with 10.34 million shares with a decline of 48 paisas to Rs43.98 per share; it was followed by Jahangir Siddiqui Co with 9.52 million shares with a decline of 48 paisas to Rs16.22 per share.

Shares turnover in the futures market rose to 6.99 million shares from 3.99 million shares traded in the previous session. Of a total of 362 companies’ stocks traded, 167 advanced, 175 declined and 20 remained unchanged.

Wyeth Pak Rs44.76
Closing Rs944.76

Khyber Tob Rs4.89
Closing Rs102.71

MCB Bank Rs3.91
Closing Rs214.60

Bata Pak Rs74.50
Closing Rs1,415.50

Colgate Palm Rs27.00
Closing Rs1,400.00

Unilever Pak Rs24.44
Closing Rs100.75

 

Courtesy: The News


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