Business

Market watch: Index closes in black on IMF’s positive review

Benchmark KSE-100 index rises 43.78 points.

Our Correspondent March 31, 2014

The value of shares traded during the day was Rs6.9 billion. PHOTO: FILE

KARACHI: The index opened green with the latest International Monetary Fund (IMF) review on Pakistan pointing to an overall improved economic scenario.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.16% or 43.78 points to end at 27,159.91.

“Oil and Gas Development Company (OGDC PA -2.5%) once again succumbed to pressure as institutions opted to sell as fear of foreign selling still loomed while rumours of stock being non-shariah complaint adding to the damage,” said Naveen Yaseen of Elixir Securities.

“Habib Bank Limited (HBL PA +2.4%) gained strength as financials are expected to report stellar earnings in 2014 along with morning news of IMF cautioning the central bank to tighten monetary policy. Investors opted to book gains in United Bank Limited (UBL PA -0.8%) as it has appreciated over 13.2% in the past week.

“Meanwhile, the pharmaceutical sector was in the limelight as most stocks closed at their respective upper price limit Glaxosmithkline Pakistan (GLAXO PA +5%), IBL Healthcare (IBLHL PA +5%), and Sanofi Aventis (SAPL PA 5%) on the news that pharmaceutical companies have increased prices of life saving drugs by 30%,” Yaseen said.

JS Global Analyst Fahad M Ali said that the market was expected to consolidate. “We expect the market to consolidate at current levels. We advise investors to accumulate cements, banking and OMC stocks,” he concluded.

Trade volumes fell to 136 million shares compared with Friday’s tally of 170 million.

Shares of 360 companies were traded on Monday. At the end of the day, 160 stocks closed higher, 170 declined while 30 remained unchanged. The value of shares traded during the day was Rs6.9 billion.

Summit Bank was the volume leader with 16.1 million shares, gaining Rs0.32 to finish at Rs3.40. It was followed by Lafarge Pakistan with 12 million shares, losing Rs0.04 to close at Rs11.14 and SilkBank Limited with 8.2 million shares, gaining Rs0.14 to close at Rs2.15.

Foreign institutional investors were net buyers of Rs758 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, April 1^st, 2014.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.