Pakistan equities opened positive carrying momentum from the previous session as political crisis seemed to be heading towards resolution.
At close, the Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 1.15% or 335.26 points to end at 29,595.55.
Elixir Securities analyst Harris Ahmed Batla said the move up was further strengthened when members of the assembly from the protesting PTI participated in the ongoing joint session of upper and lower house hinting towards resolution of the political crises.
“The lagging cement sector witnessed a sharp recovery with Lucky Cement (LUCK PA +5%) hitting its second consecutive upper price circuit while Kohat Cement (KOHC PA +2.9%) also experienced gains,” said Batla.
“On the contrary, Pakistan State Oil (PSO PA -1.2%) closed lower after earnings that were slightly below estimates, possibly on no stock payout, while volumes table remained dominated by small cap retail plays to the likes of Pak Electron (PAEL +5%), Maple Leaf Cement (MLCF PA +4%) and Jahangir Siddiqui & Co (JSCL PA +5%) on retailers activity.”
The analyst said that investors will continue to track foreign flows and important developments on the political front. “We can see the index testing 30,000 before taking a breather barring no surprises,” he said.
JS Global analyst Muhammad Mobeen recommended investors to remain cautious and not get carried away with the bullish momentum as there can be yet another twist in the political drama. “Sticking to high dividend yield plays like NCPL should be the strategy going forward,” he said.
Trade volumes rose to 200 million shares compared to Tuesday’s tally of 182 million.
Shares of 353 companies were traded on Wednesday. Of these, 98 companies declined, 229 closed higher while 26 remained unchanged. The value of shares traded during the day stood at Rs11 billion.
Pak Elektron Limited was the volume leader with 14.5 million shares, gaining Rs1.52 to close at Rs32.09. It was followed by Maple Leaf Cement with 14.5 million shares, gaining Rs1.12 to close at Rs29.08 and Jahangir Siddiqui and Company with 14 million shares, gaining Rs0.8 to close at Rs10.64.
Foreign institutional investors were net buyers of Rs446 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, September 4th, 2014.
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