Market watch: Index-heavyweights, earnings boost bullish momentum

Benchmark KSE-100 index gains 69 points.


Our Correspondent February 14, 2013
Trade volumes climbed to 313 million shares compared with Wednesday’s tally of 262 million shares.

KARACHI: Institutional buying in index-heavyweights pushes the market to continue riding the bullish momentum on reasonable activity as corporate earnings season keeps the mood upbeat. The telecom sector stayed on investors’ radar as the market expect better results for the sector after the Pakistan Telecommunication Company realises international call revenue.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 0.39% or 69.37 points to end at 17,765.82 points. Trade volumes climbed to 313 million shares compared with Wednesday’s tally of 262 million shares. The value of shares traded during the day was Rs6.41 billion.

“The index-heavyweights MCB Bank and the Oil and Gas Development Company (OGDC) drove the market to new highs,” reported Ovais Ahsan, analyst at JS Global Capital. OGDC closed up 1% at Rs204.04 while MCB Bank closed up 1.7% at Rs217.48.

“PTCL results, announced on Wednesday, generated investors’ interest in all telecom stocks as they expect that higher rates under the international clearing house arrangement will impact positively on the whole sector,” said Samar Iqbal, equity dealer at Topline Securities.

The oil marketing giant, Pakistan State Oil (PSO), climbed 1.5% on expectations that the government will soon release funds after multiple SOS calls by the company bearing the brunt of the circular debt situation.

Textile cum power play Nishat Chunian attracted buying as the company’s listed power subsidiary Nishat Chunian Power announced cash payout of Rs2 per share accompanying its results, driving it to hit at its upper circuit.

Consumer plays Unilever and National Foods were also in the limelight in anticipation of strong earnings growth in the sector.

Telecard was the volume leader with 40.5 million shares gaining Rs0.95 to finish at Rs5.6. It was followed by Pakistan Telecommunication Company with 32.52 million shares gaining Re1 to close at Rs21.1 and Sui Northern Gas Pipelines with 22.37 million shares shedding Rs0.16 to close at Rs25.3.

Foreign institutional investors were net buyers of Rs400.35 million.

Published in The Express Tribune, February 15th, 2013.

Like Business on Facebook to stay informed and join in the conversation.

COMMENTS

Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ