Two stock brokers exchange views with the stock exchange electronic board in the background. PHOTO: INP
KARACHI: The index escalated to a high as bullish momentum returned on strong payouts and favourable news.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 1.38% or 355.84 points to end at 26,209.38.
“Pakistan Oilfield’s stock rallied 2.9% on relatively firmer international oil prices and news of successful commissioning of Makori Gas Processing Plant,” said Mujtaba Barakzai of JS Global.
“Pakistan Petroleum Limited too, on the last spot day, rose 3.5% on news of drilling at the Badin block and the company’s strong payout announced in the 1HFY14 results.
“Engro Corporation generated healthy volumes of 3.9 million shares on expectations of concessionary gas allocation to EFERT.
“EFOODS also followed the momentum as the stock closed at its upper circuit. Strong results attracted investors towards the cement sector as DG Khan Cement and Fauji Cement Company Limited gained 4.3% and 1.5% respectively.
“Pakistan Telecommunication Company Limited gained 4.2% on news that the government has transferred 68 properties out of 131 in favor of Etisalat,” said Barakzai.
Elixir Securities analyst Naveen Yaseen stated that early morning selling pressure was largely overcome by institutional activity in United Bank and Habib Bank with the former hitting the upper price limit over morning news of privatisation plans. Nishat Mills continued with the momentum on expected availability of gas in the coming weeks.
“We expect the upward trend to continue with sectors such as cements and banks to be in focus. Due to increased local interest fuelled by strong foreign inflows, market will likely remain buoyant with excitement further backed by hopes of stability in forex reserves and improved macroeconomic indicators,” said Yaseen.
Trade volumes rose to 287 million shares compared with Monday’s tally of 241 million.
Shares of 373 companies were traded on Tuesday. At the end of the day, 201 stocks closed higher, 154 declined while 18 remained unchanged. The value of shares traded during the day was Rs12.6 billion.
The Bank of Punjab (R) was the volume leader with 40.5 million shares, losing 0.05 to finish at Rs0.02. It was followed by Maple Leaf Cement with 26.4 million shares, gaining Rs1.04 to close at Rs31.62 and Lafarge Pakistan with 17.9 shares, gaining Rs0.34 to close at Rs11.38.
Foreign institutional investors were net sellers of Rs36 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, March 5th, 2014.
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