KARACHI: The stock market kicked off the final week of May on a positive note, with foreign inflows and institutional activity guiding investor sentiment to help restore the market to levels above the 14,000 points psychological barrier.
Ahsan Mehanti, director at Arif Habib Corp, was of the opinion that the market closed bullish “on investor speculations in [an] oversold market ahead of [the] federal budget announcement due this week.”
The Karachi Stock Exchange’s (KSE) benchmark 100-share index recovered 0.76% or 106.45 points to end at the 14,031.51 point level. Trade volumes improved to 181 million shares compared with Friday’s tally of 165 million shares, and the value of shares traded during the day was Rs5.73 billion.
The rally was “led by institutional buying in cement and fertiliser stocks,” according to Topline Securities Equity Dealer Samar Iqbal.
“Renewed foreign interest in oil and banking stocks, stability in the rupee’s value, expectations for an early resolution to the Nato supply issue and a recovery in global stocks and commodities played a catalyst role in bullish sentiments,” added Mehanti.
JS Global Analyst Jawad Khan said the market was helped by an inflow of approximately $10 million during the last two trading days of the previous week. On Monday, foreign institutional investors were net buyers of an additional Rs457.89 million ($5.09 million), according to data maintained by the National Clearing Company of Pakistan Limited.
“Pakistan Petroleum gained the most – jumping 1.9% – while Pakistan Oilfields and the Oil and Gas Development Company also advanced 0.5% and 0.6% respectively,” reported Jawad Khan. “Amongst cements, DG Khan Cement and Lucky Cement closed with clipped gains of 2.6% and 0.9% respectively, after reports of a cement price increase [to be announced in the budget]. Refineries were in the limelight after reports that the Federal Excise Duty on oil imports will be abolished, giving [them] an earnings jump.”
DG Khan Cement was the volume leader with 23.80 million shares gaining Rs1.13 to finish at Rs43.90. It was followed by JS Bank with 12.74 million shares gaining Rs0.40 to close at Rs6.24 and Bankislami Pakistan with 11.84 million shares gaining Rs0.41 to close at Rs11.61.
Published in The Express Tribune, May 29th, 2012.
More in BusinessUrea sales plunge 37% in April