Unilever, Nestle drive KSE index up by 22 points

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KARACHI: The Karachi Stock Exchange’s (KSE) benchmark 100-index increased by approximately 22 points to 17,948 points on Thursday on some buying witnessed in two expensive stocks, i.e. Unilever Pakistan and Nestle Pakistan, dealers said. Otherwise, the majority of active stocks closed with a decline in their prices amid trade turnover declining to a 10-week low of 100 million shares, they added. “Some buying in expensive Unilever Pakistan and Nestle Pakistan helped the KSE 100-index to close on a positive note,” Samar Iqbal, senior manager equity sales at Topline Securities, said.

The KSE-100 index increased by 21.62 points, or 0.12 percent, to 17,926.14 points. The index moved both sides of the fence by 57.80 points, making an intraday high of 17,978.50 points and low of 17,920.70 points.

The KSE 30-index decreased by 27.86 points, or 0.20 percent, to 14,161.71 points.

The two companies (Unilever and Nestle) drove the KSE 100-index by 30 points and 11 points, respectively.

Unilever Pakistan closed at Rs12,225.21 with a surge of Rs582.15, or five percent (the maximum allowed limit in a session), with a turnover of 3,880 shares. Nestle Pakistan closed at Rs5,499 with an increase of Rs249, or 4.74 percent on a turnover of a mere 100 shares.

Samar said that Unilever Pakistan invited fresh buying after the KSE recommended it to buy-back its shares at Rs15,000 per share against its offer of Rs9,700 per share. “Nestle Pakistan – Unilever’s fellow in fast moving consumer goods segment – followed suit,” she said. She added that the majority of investors preferred to stay on the sideline in the absence of any trigger, which is why the turnover fell to a 10-week low.

Major activity was witnessed in Pakistan International Airlines (PIA) as it appeared as the day’s turnover leader with 21 million shares. The stock closed at Rs7.23 with an increase of 12 paisas. “Investors’ preference to accumulate low price stocks helped the PIA to become turnover leader,” she said.

Telecom sector gained some momentum after the Supreme Court referred back the international calling rates’ case to the Competition Commission of Pakistan, she added. Ahsan Mehanti, analyst at Arif Habib Corporation, said that institutional buying ahead of the financial results’ announcements for the quarter to be ended on March 31 helped the market maintain buying momentum for the second consecutive session.

Hasnain Asghar Ali, chief operating officer at Escorts Capital, said that the KSE remained directionless with no triggers available in the market. However, cautious swap in blue-chips held usual trading during the session. “Fauji Fertilizer Bin Qasim Limited invited renewed buying on expectations of higher earnings for the quarter,” he said.

The total trade turnover declined to 100.54 million shares from 148.06 million shares traded in the previous session. On the contrary, market capitalisation surged by Rs23 billion to Rs4,405 billion.

As many as 318 companies traded on board, while 151 declined, 130 advanced, and 37 closed unchanged. Wateen Telecom was the second turnover leader with 7.40 million shares as it closed at Rs3.84, up by 23 paisas. Lotte PakPTA closed at Rs7.23 with a fall of eight paisas on a turnover of 6.10 million shares.

Unilever Food Rs160.00
Closing Rs4,400.00

Shezan Int Rs20.00
Closing Rs420.00

Indus Motor Rs13.00
Closing Rs295.00

Pak Services Rs17.87
Closing Rs194.88

Nestle Pak Rs13.00
Closing Rs5,499.00

Millat Tractor Rs4.69
Closing Rs515.31

 

Courtesy: The News


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