Market watch: Sukuk issue spurs interest as index rises

Benchmark KSE-100 index increases 230 points.

KARACHI: Pakistan equities closed positive on Wednesday with the index testing 31,500, spurred by institutional interest.

At close, the Karachi Stock Exchange’s (KSE) benchmark 100-share index declined 0.74% or 230.73 points to end at 31,454.47.

“Investors brushed away Tuesday’s foreign selling as excitement over the issue of Sukuk,” said Elixir Securities Analyst Faisal Bilwani. “Lower oil prices kept mood upbeat on better macros going forward while turnover also showed relative improvement.”



“Large cap banks led the upside with MCB Bank (+1.6%) and United Bank (+2.8%) gaining as lower inflation expectations in months ahead is fuelling excitement of another possible rate reduction, a move that will be positive for banks with large debt portfolios.

“Engro Corp (+2.7%) added to gains on concessionary gas bets while Engro Foods (+3.6%) closed at an eight-week high and churned over 12 million shares on reported foreigner buying.”

Meanwhile, JS Global Analyst Muhammad Mobeen said that FEROZ remained the major highlight for the day within the pharmaceutical sector to reach its upper circuit. “Within the cement sector, DGKC (+2.8%), which remains one of our top picks, outperformed as low coal prices and stable prices will keep margins strong,” he said. “Within the textile sector, Gul Ahmed Textile Mills reached its upper lock, and Nishat Mills Limited gained 2.3% as investors expect a number of incentives in the upcoming textile policy.”

Trade volumes rose to 246 million shares compared to 159 million on Tuesday.



Shares of 384 companies were traded on Wednesday. Of these, 138 companies declined, 218 closed higher while 28 remained unchanged. The value of shares traded during the day was Rs13.1 billion. Jahangir Siddiqui and Company was the volume leader with 22.6 million shares, gaining Rs0.31 to close at Rs16.72. It was followed by Japan Power with 19.5 million shares, gaining Rs0.53 to close at Rs3.73 and Engro Foods Limited with 12.4 million shares, gaining Rs3.63 to close at Rs102.99.

Foreign institutional investors were net sellers of Rs242 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, November 27^th, 2014.

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