Market watch: Market welcomes New Year with upward trend

Benchmark KSE-100 index rises 347.71 points.

KARACHI: Led by the cement and textile stocks, the market witnessed another improved day as the Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 1.38% or 347.71 points to end at 25,608.85.

Fareesa Baig of Elixir Securities said that the broader market sentiment was a positive one from the onset. “Pakistan equities welcomed the new year with a bang, climbing almost 1.3% to close at a new high above 25,600 levels with reasonably good volumes,” said Baig.

She added that investor excitement continued in the cement sector over strong demand outlook for upcoming months with Fauji Cement (3.8%), Maple Leaf (5%) and DG Khan Cement (4.7%) among the most traded. On the other hand, textiles celebrated Pakistan’s GSP Plus status coming into effect from yesterday.



“Consumer Price Index inflation numbers clocked in lower than estimates at 9.18% for the month of December, further fuelling the positive sentiments. Financials to the likes of Bank Al Habib (-1.4%) and Habib Bank (-1.3%) saw some late selling over investor perception that the policy rates remain unchanged in the upcoming monetary policy statement in mid January.”

JS Global Capital analyst Fahad Ali shared a similar perspective. “Fireworks continued on from last night’s celebration at the bourse on the first day of 2014,” said Ali.

“Textile and cement companies attracted investors where Nishat Mills Limited and DG Khan Cement hit their upper circuit as GSP Plus status is being implemented from today onwards.”

Ali believed the rise in cement sector was on the basis of strong rumours of rise in cement prices and strong future dispatches.

Trade volumes rose to 341 million shares compared with Tuesday’s tally of 160 million.



Shares of 404 companies were traded on yesterday’s trading session. At the end of the day, 294 stocks closed higher, 94 declined while 15 remained unchanged. The value of shares traded during the day was Rs4.02 billion.

Azgard Nine was the volume leader with 31 million shares, gaining Rs1.00 to finish at Rs8.14. It was followed by Fauji Cement with 28.2 million shares, gaining Rs0.61 to close at Rs16.56 and Maple Leaf Cement with 16.4 million shares, gaining Rs1.37 to close at Rs28.80.

Foreign institutional investors were net buyers of Rs246 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, January 2^nd, 2014.

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