KSE turnover reaches seven-year high

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The Karachi Stock Exchange (KSE) benchmark 100-share index increased by 150 points on Thursday to a new all time high of 21,590.66 points and seven-year high turnover of 637 million shares on institutional and foreign buying, dealers said.


KSE Director Yaseen Lakhani said the market rose on institutional and foreign buying amid hopes that the new government with experienced and honest managers would solve the problems. “Both fundamentals and sentiments of the market remained positive. Market will be strengthened if the power crisis and law and order are improved,” he said.


The KSE-100 improved by 149.54 points, or 0.70 percent, to 21,590.66 points against 21,441.12 points recorded in the last session. The index at one time during the intraday session reached to a high level of 21,682.06 points, while the lowest level of the day was recorded at 21,441.12 points.


The KSE-30 index also went up by 75.15 points, or 0.45 percent, to 16,702.60 points in the session against 16,627.45 points earlier.


Trading was mostly recorded in the second- and third-tier stocks. Of a total of 402 companies’ active in the session, 258 remained in green, 122 in red while 22 stayed unchanged.


Turnover climbed by 153 million shares to seven year high of 637.52 million shares from 484.56 million shares. Trading value expanded to Rs13.11 billion against Rs12.23 billion. Market capital improved to Rs5.24 trillion against Rs5.20 trillion recorded in the last session.


Share prices of Oil and Gas Development Company and Pakistan State Oil rose on the expectation that the resolution of energy issue will help these companies, thereby causing index to reach all time high.


Traders feared correction in the morning, said Zafar Moti, a senior member of KSE. On the contrary, the market went up and performed well, which was considered as a dangerous sign. “Smooth transition of government is helping building up of positive sentiments,” he said.


Ahsan Mehanti, an analyst at Arif Habib Corp, said stocks closed bullish in the pre-budget rally led by oil stocks on strong valuations and renewed hopes for a solution to the circular debt issue in the energy sector after the new government announced a plan to issue Rs500 billion treasury bills to clear the circular debts. “Institutional interest was witnessed in stocks across the board amid higher trades in second- and third-tier stocks amid hopes for lower consumer price index inflation for May 2013,” he said.


Samar Iqbal, senior manager equity sales at Topline Securities (Pvt) Ltd, said abnormal activity in low-priced shares caused volumes to touch 637 million shares. “Though value traded remained close to Rs13 billion, yet around 84 million shares in Bank of Punjab Right traded at a share value of Rs4 resulted in high turnover in number of shares,” she said.


Ovais Ahsan, an analyst at JS Global, said the market continued to move upward led by energy sector. “Nawaz Sharif’s comments in the newspapers about the power sector propelled companies in the energy chain with PSO (up 4 percent), OGDC (up 1.3 percent) and KESC (up 5.7 percent), which were the major leading movers,” he said.


Indus Motors gained five percent on expectations of a bounce back in sales during this quarter and continued depreciation of the Japanese Yen. Third-tier names saw high volumes as the Bank of Punjab rallied on speculation of a major turnaround for the beleaguered bank under the new government. “The market bucked the global trend today but further weakness in the region could have had bearing on local sentiment due to higher foreign participation in the market,” he said.


An analyst at Sherman Securities said share prices of Bank of Punjab increased (up 7.8 percent) on news of better earnings amid future development plans and property sellout, while news of foreign buying attracted investor attention in Pakistan Telecommunication Company Limited (up 3.3 percent). Cement stocks on the other hand remained mostly range bound.


Highest increase was recorded in shares of Wyeth Pak Ltd (by Rs67 to Rs1,417 per share) and Shezan Inter (by Rs31.08 to Rs652.78 per share). Major decline was noted in shares of Nestle Pak (by Rs58 to Rs6,542 per share) and Indus Dyeing XD (by Rs27.75 to Rs530 per share).


Significant turnover was recorded in stocks of Bank of Punjab (Right), PTCL, Worldcall Telecom, Telecard Limited, Bank of Punjab, Japan Power, Southern Electric, NIB Bank Limited, Karachi Electric Supply Company and Jahangir Siddiqui Co.


Bank of Punjab (Right) remained the volume leader with 83.53 million shares with increase of Re1 to Rs4.16 per share, followed by PTCL with 45.89 million shares with increase of 69 paisas to Rs21.60 per share.


Worldcall Telecom emerged as the third leading stock with 32.22 million shares with increase of 23 paisas to Rs3.40 per share; Telecard Limited (31.46 million shares with increase of 49 paisas to Rs5.94 per share), Bank of Punjab (22.24 million shares with increase of Re1 to Rs13.80 per share); Japan Power (21.96 million shares with increase of 66 paisas to Rs3.83 per share); Southern Electric (21.60 million shares with increase of 72 paisas to Rs3.89 per share); NIB Bank Limited (20.95 million shares with increase of 23 paisas to Rs2.65 per share); KESC (20.60 million shares with increase of 38 paisas to Rs7.08 per share); and 19.88 million shares of Jahangir Siddiqui Co traded, up Re1 to Rs13.18 per share.


Turnover of shares in the futures market improved to 31.46 million shares from 27.65 million shares traded in the previous session. Bank Al-Falah Limited June futures led the market with 3.50 million shares with increase of 15 paisas to Rs18.15 per share, followed by PTCL June futures with 2.75 million shares with decrease of 30 paisas to Rs21.17 per share. Out of 163 companies’ shares traded in the future market, 75 recorded gains, 84 losses while four remained unchanged.

Courtesy:  The News

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