This week started off on that positive note, and Tuesday saw the continuation of a broad rally that took the index near the 16,900 points level, as the relative lull after last week’s high political drama soothed investor sentiments and encouraged buying ahead of the highly-anticipated earnings season.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index surged 1.52% or 253.28 points to end at the 16,894.09 points level. Trade volumes ballooned to 184 million shares compared with Monday’s tally of 128 million shares. The value of shares traded during the day was Rs6.29 billion.
“Stocks continue the northbound ride, as earnings and payout excitement trumps macroeconomic concerns raised by the International Monetary Fund and others,” commented Elixir Securities’ analyst Faisal Bilwani. “… We see renewed interest in financials as the most encouraging sign,” he added.
“Aggressive institutional buying helped equities gain 1.5% with improving volumes,” added Samar Iqbal, equity dealer at Topline Securities.
Shares of 370 companies were traded on Tuesday. At the end of the day, 237 stocks closed higher, 85 declined, while 48 remained unchanged.
“National Bank led the charge, closing at the days upper price limit; while United Bank and MCB Bank followed suit. As expected, Fauji Fertilizer added to recent gains on reported foreigners’ buying, while Engro Corp also closed positive on local interest,” reported Bilwani.
Fauji Cement was the volume leader with 14.24 million shares, gaining Rs0.09 to finish at Rs7.39. It was followed by Jahangir Siddiqui and Company with 12.07 million shares, gaining Rs0.39 to close at Rs15.69; and Maple Leaf Cement with 11.94 million shares, gaining Rs0.30 to close at Rs16.22.
“Oil stocks also played their part, as [expectation of] attractive payouts was a good enough reason to build the rally. The Oil and Gas Development Company, Pakistan Oilfields and Pakistan Petroleum are up 1.11%, 2.56% and 1.86% respectively,” added JS Global analyst Khaldi Usmani.
Foreign institutional investors were net buyers of Rs121.75 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, January 23rd, 2013.
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