Market watch: Cement and financial stocks lead gains on bourse

Benchmark KSE-100 index rises 223.41 points.

KARACHI: Despite starting off the day on a sluggish note, the stock market steadily gained momentum and ended the trading session in the black.

The Karachi Stock Exchange (KSE) benchmark 100-share index ended Thursday’s trading with a rise of 0.66% or 223.41 points at 33,942.27.



Elixir Securities analyst Haris Ahmed Batla said that the equities opened sideways but gradually found their way upwards and got close to the 34,000 levels.

“After a slow start, Engro Corporation (+5%) found its rhythm back,” said Batla. “As a result of its earnings announcement, the stock hit the upper price limit for the second consecutive day.”

That strengthened sentiments in the broader market, helping cement and financial companies to recover from recent losses.

He added that National Bank (+2.49%) and MCB Bank (+1.84%) led financial plays while DG Khan Cement (+2.85%) and Pioneer Cement (+3.95%) sparked institutional interest with a significant rise.

“On the contrary, index-heavy oil shares closed in the red following a decline in international crude. Oil and Gas Development Company fell 1.54% and Pakistan Oilfields dropped 1.05%,” said Batla.

JS Global analyst Muhammad Mobeen said the market remained bullish as the cement sector recovered from its recent profit-taking phase with leading stocks recording an increase.

“Within the banking sector, NBP rose 2.5% on expectations of healthy year-end results. In the pharma sector, profit-takers dominated the day as Searl (-3.9%), Feroz (-1%) and Glaxo (-1.3%) ended in the red.”

Trade volumes rose to 240 million shares compared to 164 million on Wednesday.

Shares of 370 companies were traded. Of these, 121 declined, 230 closed higher and 19 remained unchanged. The value of shares traded during the day was Rs12.6 billion.



Pakistan International Airlines was the volume leader with 24 million shares, gaining Rs0.94 to close at Rs10.25. It was followed by Pak Elektron with 22.5 million shares, gaining Rs2.73 to close at Rs59.70 and Jahangir Siddiqui and Company with 17.1 million shares, gaining Rs1.02 to close at Rs21.46.

Foreign institutional investors were net sellers of Rs63 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, February 20^th,  2015.

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