KARACHI: The bulls reared for action on Thursday, thrusting aside the generally negative sentiment witnessed in the stock market this week to restore some of its recently-lost gains. “Local institutional buying in blue chip stocks helped index to post a strong recovery,” reported Topline Securities equity dealer Samar Iqbal.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index surged 2.15% or 287.31 points to end at the 13,656.20 points level.
“Pakistan stocks closed bullish on foreign interest and institutional support in an oversold market on positive statements by a US senator,” said Arif Habib Corp Director Ahsan Mehanti.
Dealers and analysts mainly attributed the bull-run to indications from the US that it may yet be willing to revisit negotiations over Nato supply routes with Pakistan. The news came as a welcome stimulus for investors who’d largely chosen to stick to the sidelines this week.
“World Bank forecasts for a firm recovery in the Pakistani economy and EU trade concessions on exports [also] played a catalyst role in bullish sentiments,” added Mehanti.
Trade volumes shot to 114 million shares compared with Wednesday’s tally of 78 million shares. The value of shares traded during the day was Rs4.30 billion.
“The KSE-100 index ended the day on positive note on the back of expectations of approval of finance bill with the budget,” observed JS Global analyst Shakir Padela. “The bull spell was witnessed across the board with major gainers being cements, banking and fertiliser stocks. The positive sentiment will likely continue if the relationship with the USA stabilises with support from international markets.”
Shares of 370 companies were traded on Thursday. At the end of the day 221 stocks closed higher, 52 declined while 97 remained unchanged. Pakistan Telecommunication Company was the volume leader with 16.45 million shares gaining Rs0.76 to finish at Rs14.60. It was followed by DG Khan Cement with 8.25 million shares gaining Rs1.88 to close at Rs41.63 and Lucky Cement with 7.05 million shares gaining Rs2.33 to close at Rs118.05.
Foreign institutional investors were buyers of Rs215.13 million and sellers of Rs286.37 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, June 15th, 2012.
More in BusinessCoal answer to energy crisis, say experts