Market watch: Bourse opens election week on positive note

Market flirts with new highs before closing lower.

KARACHI: The Karachi bourse witnessed a renewed bout of buying activity in the first trading session of the week. The index shot up as high as 19,444 points in intraday trade, before opportunists booked profits and forced the index to close with clipped gains.

“The market opened on a positive [note] and rallied by more than 200 points in anticipation that the elections will bring positive news for the economy,” said Topline Securities’ Senior Manager Equity Sales Samar Iqbal. “However, profit taking was witnessed later on, and the market ended almost flat.”

The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained only 0.16% or 30.07 points to end at the 19,256.70 points level. Trade volumes were flattish at 137 million shares, compared with Friday’s tally of 136 million shares. The value of shares traded during the day was Rs7.09 billion.

“The day kicked off on a positive note, with cautiously optimistic investors taking chances in Pakistan Petroleum (up 2.37%), which added to Friday’s gains on news of a gas discovery and peaked at the day’s limit of 5%,” said Elixir Securities analyst Fareesa Baig. “Reportedly, state funds took that to their advantage and sold, with the stock still managing decent gains by close.”

“Fauji Cement remained in the limelight as investors accumulated shares after excellent last quarter results,” reported Iqbal. “Engro Corp also attracted investors who think that the new government may make direct efforts to resolve gas issues.”

Fauji Cement was the volume leader with 11.05 million shares, gaining Rs0.04 to finish at Rs9.01. It was followed by International Steel with 8.38 million shares, gaining Rs0.88 to close at Rs17.48; and Engro Corporation with 7.87 million shares, gaining Rs1.50 to close at Rs135.07.

Foreign activity was reportedly witnessed in the Oil and Gas Development Company, while Fauji Fertilizer Company also witnessed buying activity due to the stock’s good dividend yield, added Mujtaba Barakzai from JS Global Capital.

Foreign institutional investors were net buyers of Rs860.49 million worth of securities, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, May 7^th, 2013.

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