KARACHI: The local bourse managed to buck the trend with Index-heavyweights oil and gas sector, cement sector and blue-chip stocks making their mark, pushing the market to an unprecedented high above the 16,350-point barrier.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index jumped 0.58% or 94.29 points to end at the 16,364.77 point level. Trade volumes climbed to 318 million shares compared with Monday’s tally of 260 million shares.
“Renewed buying was seen in cement stocks amid expectations that their next quarterly results will be better than their last quarter,” said Samar Iqbal, analyst at Topline Securities.
DG Khan Cement remained in the spotlight in anticipation of bottom-line growth due to expected lower effective taxation and better fuel efficiency on the back of Tyre Derived Fuel plant, to be operational in December 2012. As for Maple Leaf Cement, according to a statement by officials earlier, the company may record the highest profit in six years as cement prices rise and slashed interest rates reduce loan payments.
Shares of 411 companies were traded on Tuesday. The value of shares traded during the day was Rs6.9 billion.
“Index heavy names Oil and Gas Development Company and Pakistan State Oil attracted attention and closed in black on institutional interest with the former hitting its upper circuit despite earlier reports that government will not likely approve increase in gas prices of one of its key fields – Qadirpur gas field,” said Faisal Bilwani, analyst at Elixir Securities.
Karachi Electric Supply Company (KESC) led the gainers after news of increase in electricity tariffs brought significant interest from retail investors who jumped aboard the bandwagon of the company which actually gains nothing from the tariff increase, added Bilwani.
Fauji Cement was the volume leader with 31.71 million shares shedding Rs0.13 to finish at Rs6.90. It was followed by KESC with 28.26 million shares gaining Rs0.73 to close at Rs6.56 and DG Khan Cement with 19.8 million shares rising Rs1.96 to close at Rs55.40.
Foreign institutional investors were net buyers of Rs75.85 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, November 28th, 2012.