The index finally broke the dull spell and gained momentum backed by institutional value buying.
At close, the Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.5% or 149.90 points to end at 30,143.77.
“Nishat Mills Limited (NML PA +4.3%) announced annual earnings in-line with market expectation. The stock hit its upper price limit intra-day which helped generate trading interest,” said Elixir Securities analyst Harris Ahmed Batla.
“Nishat Chunian Limited (NCL PA +1.41%) and Engro Foods (EFOODS PA +4.66%) also traded upper circuit on rumoured local institutional interest, while oil and banks traded flat after the announcement pertaining to Oil and Gas Development Company Limited (OGDC PA 7.5%) shares offering by the government. “
“On the contrary, floods in the country kept fertiliser plays under pressure closing FATIMA (PA -4.20%) and Engro Fertilizer (EFERT PA -0.33%) in red,” Batla said.
Meanwhile, JS Global analyst Muhammad Mobeen said NML witnessed euphoric growth to reach its upper circuit.
“Mari Petroleum Company Limited and Attock Refinery Limited (ATRL) attracted investor interest and led the oil and gas sector, reaching their upper circuits as well,” said Mobeen.
“We expect the market to remain volatile and recommend investors to remain cautious and invest in fundamentally strong stocks.”
Trade volumes rose to 164 million shares compared to Monday’s tally of 115 million.
Shares of 391 companies were traded on Tuesday. Of these, 131 companies declined, 239 closed higher while 21 remained unchanged. The value of shares traded during the day stood at Rs9.5 billion.
Byco Petroleum Pakistan Limited was the volume leader with 8.7 million shares, gaining Rs0.72 to close at Rs10.69. It was followed by Pakistan International Bulk Terminal Limited with 5.7 million shares, gaining Rs0.80 to close at Rs22.12 and Jahangir Siddiqui and Company with 5.2 million shares, gaining Rs0.22 to close at Rs10.36.
Foreign institutional investors were net buyers of Rs117 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 24th, 2014.
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