KARACHI:
Displaying relative strength on the back of financial and cement sectors, the index ended slightly higher.
Increased interest from foreign institutional investors helped momentum as the Karachi Stock Exchange’s (KSE) benchmark 100-share index increased 0.23% or 70.47 points to end at 30,663.78.
Elixir Securities analyst Jawwad Aboobakar said Pakistan equities continued their upward momentum. “Power producers to the likes of Hub Power Corporation (HUBC) +3.05% and Nishat Chunian Power (NCPL) +4.41% were able to register a firm gain on the back of lower consumer price index (CPI) and growing prospect of discount rate cut in near future,” said Aboobakar.
“Lucky Cement (LUCKY) +3.28% and Bank Al Falah (BAFL) +5% were major gainers on reported institutional and foreign buying.
“Declining international oil prices continued to dent oil stocks with OGDC -3.49% losing ground following the announcement of floor price at Rs216 per share for its secondary issue.
“Foreign flows will continue to guide direction going forward while any hike in cut-off price for OGDC sell off will bring sustainability in oil stocks.”
Meanwhile, JS Global analyst Ovais Ahsan said the bull run continued unabated on the KSE as the benchmark index moved further into uncharted territory.
“Auto sector further moved north as the Japanese yen reached a seven-year low propelling local producers like Indus Motor +4%,” said Ahsan.
“Going forward, we expect the market to continue testing new highs and a low inflation number for October has made the case of a rate cut strong.”
Trade volumes rose to 293 million shares compared to 232 million on Wednesday.
Shares of 385 companies were traded on Thursday. Of these, 166 companies declined, 197 closed higher while 22 remained unchanged. The value of shares traded during the day was Rs15.4 billion.
Jahangir Siddiqui and Co was the volume leader with 15.4 million shares, gaining Rs0.23 to close at Rs11.09. It was followed by Engro Fertilizer Limited with 14.5 million shares, gaining Rs1.70 to close at Rs60.66 and Bank Al Falah with 13.7 million shares, gaining Rs1.48 to close at Rs31.10.
Foreign institutional investors were net buyers of Rs24 billion worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, November 7th, 2014.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ