Market watch: Telecom, foreign buying help bourse breach 18,000

Benchmark KSE-100 index gains 153 points.

KARACHI: The local bourse breached the psychological level of 18,000 points, boosted by buying from foreign fund managers in the last few days. The telecom sector remained on investors’ radar after the court’s decision in the international clearing house case was passed in their favour.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 0.86% or 153.25 points to end at 18.074.27 point level. Trade volumes climbed to 369 million shares compared with Thursday’s tally of 350 million shares, mostly in telecoms companies. Both Pakistan Telecommunication Company and Engro Corporation closed at their upper limit.

Telecoms were boosted by news that the courts had approved the rise in international call rates. Engro Corporation, which traded lacklustre during the first session, closed at its upper lock in the second session after media reported government’s approval of a short-term gas allocation plan for the Enven urea plant.

Some correction was witnessed in oil stocks due to falling international oil prices, said equity dealer Samar Iqbal at Topline Securities.

The value of shares traded during the day was Rs9.41 billion.

Nishat Mills climbed Rs3.33 to close at Rs72.36 after its earnings announcement, which was higher than market consensus, whereas foreign buying in MCB Bank drove the stock to hit its upper lock.

WorldCall Telecom was the volume leader with 45.8 million shares gaining Rs0.14 to finish at Rs3.84. It was followed by Telecard with 31.62 million shares gaining Re1 to close at Rs7.1 and Pakistan Telecommunication Company with 29.82 million shares climbing Rs1.14 to close at Rs23.97, hitting its upper limit of 5%.

Foreign institutional investors were net buyers of Rs187.58 million, according to data maintained by the National Clearing Company of Pakistan Limited.

With the market above 18,000-level and the earnings season close to its end, going forward, political uncertainty may cause the bourse to trade volatile.

Published in The Express Tribune, February 23^rd, 2013.

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