Market watch: Index picks up on IMF’s projection

Benchmark KSE-100 index rises 94.22 points.


Our Correspondent December 11, 2013
Trade volumes rose to 179 million shares compared to Tuesday’s tally of 177 million shares. PHOTO: FILE

KARACHI: The index picked up with positive news inflows and good performance by the finance and cement sector to end higher yesterday.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.38% or 94.22 points to end at 24,972.90.

The value of shares traded during the day was Rs7.2 billion.

“National Bank (NBP PA +2.4%) was hard to ignore, with over 13 million shares exchanging hands while financials generally remained upbeat with banking giants MCB Bank ( MCB PA +0.3%) and United Bank (UBL PA +0.4%) inching northwards on continued earnings excitement” said Fareesa Baig of Elixir Securities.



“Select energy names traded positive with the government’s intention to immediately initiate the privatisation process. DG Khan Cement (DGKC PA +1.7%) and Lucky Cement (LUCK PA +0.3%) saw bullish interest with investors pinning hopes on discussions of a price hike in the coming months, while investors have seem to have factored in seasonal decline in sales.”

Fahad M Ali of JS Global Securities said that one of the encouraging news was that the International Monetary Fund (IMF) has projected Pakistan’s inflation to be at 7.09% in the fiscal year 2014.

“Remittances also rose 7% year-on-year to $6.4 billion in five months of the fiscal year 2014, while yesterday the Finance Minister Ishaq Dar said the government is targeting $20 billion reserves in three years. Interest was seen across the board namely in textile, oil and gas, banking and cement sectors.



“Textiles rallied today as the GSP case is to be presented in front of the European Union Parliament, while on the other hand, cement companies rose on the back of news of increase in per bag cement prices,” Ali said.

Trade volumes rose to 179 million shares compared to Tuesday’s tally of 177 million shares.

BankIslami Pakistan was the volume leader with 18.2 million shares, gaining Rs0.58 to finish at Rs7.37. It was followed by the National Bank of Pakistan with 13.1 million shares, gaining Rs1.32 to close at Rs56.91 and DG Khan Cement with 9.8 million shares, gaining Rs1.30 to close at Rs78.77.

Foreign institutional investors were net buyers of Rs112 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, December 12th, 2013.

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COMMENTS (1)

abd | 10 years ago | Reply

"International Monetary Fund (IMF) has projected Pakistan’s inflation to be at 7.09% in the fiscal year 2014."

Joke of the year!

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