KARACHI: With activity heating up since the announcement of better-than-expected inflation figures for the month of September, the stock market moved closer to its all-time high close of 15,676 points, achieved on April 18, 2008.
Investors continued to buy into the market in anticipation of a rate cut in the central bank’s benchmark policy rate, turning their attention to leveraged companies, away from banking stocks.
“Positive September Consumer Price Index reading of 8.79% announced yesterday, ahead of the monetary policy announcement on Friday, has raised expectations of a discount rate cut to a single digit,” said JS Global analyst Mujtaba Barakzai. “The money market has already priced in a 50 basis points cut,” he added.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index climbed 0.57% or 88.35 points to end at the 15,648.29 points level. Trade volumes grew to 140 million shares, compared with Monday’s tally of 136 million shares. The value of shares traded during the day was Rs5.96 billion.
“Increase in international oil prices and attractive dividend yields kept oil stocks on investors’ radar,” commented Samar Iqbal, equity dealer at Topline Securities. “Profit-taking was witnessed in the banking sector and cement stocks,” she added.
Shares of 344 companies were traded on Tuesday.
“Pakistan Oilfields closed up 2.4%, on the back of positive news flow from appraisal drilling at [the] Mamikhel-2 [field]. [Market heavyweight] Oil and Gas Development Company’s stock rose 1.2%, with 0.9 million shares traded,” reported Barakzai. “Fauji Fertilizer Bin Qasim closed up 4.4% on news of an increase in DAP price by Rs100 per bag, and encouraging fertiliser offtake in the month of September.”
Pakistan Telecommunication Company was the volume leader with 12.93 million shares losing Rs0.29 to finish at Rs19.56. It was followed by Lafarge Pakistan with 8.17 million shares losing Rs0.05 to close at Rs5.96 and Fauji Fertilizer Bin Qasim with 7.35 million shares gaining Rs1.66 to close at Rs39.17.
Foreign institutional investors were net buyers of Rs205.59 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, October 3rd, 2012.
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