Market watch: Oil and banks lead the way as index’s positive run continues

Benchmark KSE-100 index <br /> gains 249.63 points.

KARACHI: Despite a slow start, the index managed to break the 32,000 barrier on the back of interest in the financial and oil sectors. It managed to end in the black for the fifth successive time.

At close, the Karachi Stock Exchange (KSE) benchmark 100-share index increased 0.79% or 249.63 points to end at 32,000.01.

Elixir Securities analyst Sibtain Mustafa said the index managed to add gains following international markets and resultant inflows from foreign investors.



“Despite the slow start, momentum soon turned bullish with oil and banking sectors adding to recent gains after analysts’ published inflation estimates at below 5%, thanks to tumbling crude.

“MCB Bank (MCB, +3.5%) and United Bank (UBL, +2%) stood firm on reported foreign institutional investors (FII) buying despite a mix bag of views over banking sector profitability amid declining interest rates.

“Cements underwent profit taking with rumours of a price cut at retail level. Textiles were worst hit with Nishat Mills (NML,-3.6%) as investors panicked as European Union (EU)  issued a statement terming the recent lift of a moratorium on capital punishment as ‘sad news’.

“We believe the market would likely trend higher from January with cements and fertiliser stocks continuing to attract flows as fresh allocations from banks and FIIs will commence for 2015.”

Meanwhile, JS Global analyst Arhum Ghous said the market continued its bullish momentum to close up by 250 points and volumes remained healthy.

“The textile sector remained under pressure as rumours in the market of losing the GSP Plus status did the rounds.



“KEL again remained in the limelight as it spiked up 2.0% due to optimism in institutional investors towards better earning,” said Ghous.

Trade volumes increased to 262 million shares compared to 244 million on Tuesday.

Shares of 385 companies were traded on Wednesday. Of these, 187 companies declined, 167 closed higher and 31 remained unchanged. The value of shares traded during the day was Rs10.9 billion.

K-Electric Limited was the volume leader with 33.4 million shares, gaining Rs0.18 to close at Rs9.38. It was followed by the Bank of Punjab with 23.1 million shares, gaining Rs0.47 to close at Rs10.84 and TRG Pakistan Limited with 10.4 million shares, losing Rs0.16 to close at Rs15.03.

Foreign institutional investors were net sellers of Rs25 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, December 25^th,  2014.

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