Business

Market watch: Led by banking sector, index continues upward movement

Benchmark KSE-100 index rises 362.38 points.

Our Correspondent April 16, 2014

Shares of 380 companies were traded on Wednesday. At the end of the day, 205 stocks closed higher, 144 declined while 31 remained unchanged. PHOTO: INP

KARACHI: Led by the financial stocks, the bourse rose to almost touch the 29,500-mark.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 1.2% or 362.38 points to end at 29,458.15.

Elixir Securities analyst Jawwad Aboobaker said that the phenomenal performance of financials continued yesterday. “United Bank (UBL) +5%, Bank Al-Habib (BAHL) +5%, Habib Metropolitan Bank (HMB) +5% hit their respective upper price limits,” said Aboobaker. “MCB Bank +3.7% and National Bank (NBP) +4.7% also generated volumes as market bets on exceptional growth in profitability on improved NIMs.

“The cement sector managed to hold its own with Lucky Cement (LUCK) +2.7% and DG Khan Cement (DGKC) +0.8%. Profit-taking was seen in Engro Corporation (ENGRO) -1.2% while oils failed to pitch in on fear of foreign selling.”

In conclusion, Aboobaker observed that second tier financials (Samba Bank (SBL) +13%, JS Bank (JSBL) +9.2% and NIB Bank (NIB) +8.5% followed suit and dominated the charts as day traders remained active.

JS Global analyst Fahad M Ali voiced the same sentiment. “Major investor interest was seen in the banking sector,” said Ali. “NBP and HBL hit the upper circuit along with positive movements in other banking stocks to close in green.”

Trade volumes rose to 391 million shares compared with Tuesday’s tally of 387 million.

Shares of 380 companies were traded on Wednesday. At the end of the day, 205 stocks closed higher, 144 declined while 31 remained unchanged. The value of shares traded during the day was Rs14.06 billion.

Jahangir Siddiqui and Company was the volume leader with 33.4 million shares, gaining Rs0.55 to finish at Rs13.59. It was followed by NIB Bank Limited with 33.3 million shares, gaining Rs0.22 to close at Rs2.81 and JS Bank limited with 20.6 million shares, gaining Rs0.56 to close at Rs6.66.

Foreign institutional investors were gross buyers of Rs465 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, April 17^th, 2014.

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