With the market at an all-time high, buying by foreigners, who have been the key drivers, is expected to continue to guide the direction ahead. PHOTO: ONLINE
KARACHI: The stock index stayed above the 28,000 mark even though trading was mixed most of the day. Initially, the market fell but late buying in index heavyweights resulted in a positive close.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.60% or 170.93 points to end at 28,578.96 on Monday.
According to JS Global analyst Fahd Ali, the market experienced mixed sentiments and volumes remained relatively low.
“The market initially saw a correction when it hit a low of 28,362 (down 46 points) as the cement sector plunged because its year-on-year sales went down 4% in March,” said Ali.
However, the index recovered later as the banking sector attracted investors’ interest due to anticipation of positive earnings in the first quarter. The sector’s two-month (January and February) weighted average spreads stood at 6.02%.
“We believe the market will continue its positive momentum in the next few sessions where investors should target banking and fertiliser sectors,” concluded Ali.
Jawwad Aboobakar of Elixir Securities said value buying was witnessed in financials, particularly Bank Alfalah (+0.65%) and Faysal Bank (+4.05%), while most second and third-tier stocks remained laggards.
“However, cement shares continued to remain under selling pressure with Lucky Cement up 0.14% and DG Khan Cement down 0.62% over concerns of possible threat to the cartel,” said Aboobakar.
With the market at an all-time high, buying by foreigners, who have been the key drivers, is expected to continue to guide the direction ahead.
“Gains in excess of 5% this month alone are likely to bring some resistance at current levels, however, locals, including retail players, will keep a close watch on developments on macros and foreign flows before booking any gains,” concluded Aboobakar.
Trade volumes fell to 256 million shares compared with Friday’s tally of 402 million.
Shares of 367 companies were traded. At the end of the day, 187 stocks closed higher, 159 declined while 21 remained unchanged. The value of shares traded during the day was Rs9.1 billion.
Lafarge Pakistan was the volume leader with 33 million shares, losing Rs0.08 to finish at Rs12.78. It was followed by Faysal Bank with 23.4 million shares, gaining Rs0.61 to close at Rs15.69 and Bank of Punjab with 20.8 million shares, gaining Rs0.07 to close at Rs11.32.
Foreign institutional investors were net buyers of Rs795.4 million worth of shares, according to data compiled by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, April 8th, 2014.
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