Market watch: Index inches towards another landmark

Benchmark KSE-100 index gains 287.64 points, close at 29,000.

KARACHI: The index continued its momentum, closing at a record high as foreigners’ buying kept momentum.

At the end of the day, the Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 1% or 287.64 points to end at 28,941.01.

“Around $50 million net inflow in equities in the last eight sessions is keeping bears on a tight leash,” said Faisal Bilwani of Elixir Securities. “Locals that were eyeing resistance above 28,000 have switched gears and are picking up value plays as the country’s economy made news headlines over Eurobond sale.



“Energy (Pakistan Petroleum PPL PA +1.9%, Oil and Gas Development Company OGDC PA +.9%) and financials (Bank Alfalah BAFL PA +2.9%, MCB Bank MCB PA +1%) were the usual market movers. However, to the surprise of many, cement bounced back (Lucky Cement LUCK PA +3.8%, DG Khan Cement DGKC PA +1.4%) ahead of reported meeting of manufacturers where the issue of capacity expansions will be discussed.

“News flow from the meeting ahead will set the tone as the cement sector is making investors nervous on threat of a possible price war,” he said.

Fahad M Ali of JS Global said the market was expected to continue its bullish trend. “We expect the market to continue its bullish trend and remain in the green zone. We recommend investors to target oil and gas, cement and the banking sectors.”

Trade volumes fell to 309 million shares compared with Tuesday’s tally of 334 million.

Shares of 374 companies were traded on Wednesday. At the end of the day, 206 stocks closed higher, 149 declined while 19 remained unchanged. The value of shares traded during the day was Rs11.4 billion.



Lafarge Pakistan was the volume leader with 45.4 million shares, gaining Rs0.89 to finish at Rs13.05. It was followed by Jahangir Siddiqui and Company with 23.2 million shares, gaining Rs0.45 to close at Rs11.73 and Pace (Pakistan) Limited with 18.6 million shares, gaining Rs0.21 close at Rs5.08.

Foreign institutional investors were net buyers of Rs590 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, April 10^th, 2014.

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