The Karachi Stock Exchange’s (KSE) benchmark 100-share index surged 1.70% or 353.86 points to end at the 21,168 points level. PHOTO AFP
KARACHI:
The stock market continued on its record breaking streak on Tuesday, as investors poured money into the Karachi bourse in anticipation of better days ahead. The broad rally has now stepped into its third straight week, with only one session (last Thursday) witnessing the market close red.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index surged 1.70% or 353.86 points to end at the 21,168 points level. Trade volumes broke records to reach 444 million shares, compared with Monday’s tally of 344 million shares, while the value of shares traded during the day touched an unprecedented Rs16.52 billion.
The bullish upswing has been fuelled by large sums of money streaming in from foreign channels, which has triggered buying activity from domestic punters as well. Foreign institutional investors were net buyers of Rs2.55 billion worth of securities on Tuesday alone, according to data maintained by the National Clearing Company of Pakistan Limited.
“The market made another new high with a record turnover of Rs16.5 billion in a ready market mainly led by aggressive foreign buying,” commented Samar Iqbal from Topline Securities. “Volume in rupee terms remained at a 43-months high.”
“Foreigners have already bought shares worth $155 million on a net basis in the month of May,” Iqbal added.
SOURCE: KSE
“Locals, particularly institutional investors who were slightly hesitant and eyeing to book gains in the last few days were seen active and taking advantage of strength, while individuals continue to buy as better volumes and interest from foreign investors boosts confidence,” reported Faisal Bilwani from Elixir Securities.
Shares of 388 companies were traded in the second trading session of the week. At the end of the day, 185 stocks closed higher, 156 declined while 47 remained unchanged.
“Oils led the charge, with index heavyweight Oil and Gas Development Company (up 5%) closing on its second consecutive upper price limit, while Pakistan State Oil (up 5%) also gained to close at its upper limit,” added Bilwani. “[PSO is] up nearly 31% in the last eight sessions on hopes of better cash flows, as the new govt seems determined to curtail energy sector circular debt.”
Fauji Cement was the volume leader with 63.91 million shares, gaining Rs0.70 to finish at Rs11.76. It was followed by Pakistan Telecommunication Company with 35.84 million shares, gaining Rs0.90 to close at Rs20.67; and Lafarge Pakistan Cement with 24.13 million shares, gaining Rs0.01 to close at Rs7.98.
“Banking sector companies like MCB Bank, National Bank of Pakistan and United Bank were under pressure as profit-taking was witnessed, however they managed to close in the positive zone,” JS Global analyst Veer Bajaj said. “Investors are gaining confidence in the market, which is being reflected in volumes which stood at 444 million shares today,” he said. “A key factor behind the recent rally is the favourable political situation,” he added.
“Moreover, expectations are that the arrival of the Chinese prime minister will provide a much-needed boost to the investment environment in Pakistan,” added Samar Iqbal.
Published in The Express Tribune, May 22nd, 2013.
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