Market watch: After minor hiccup, index back on upward trek

Benchmark 100-share index gains 286.57 points.

KARACHI: Pakistan equities got back on a positive track with benchmark index closing in the black, testing the 32,000 mark on euphoria over delay in the gas tariff hike.

At close, the Karachi Stock Exchange (KSE)-100 Index closed on Wednesday at 31,887.30, registering an increase of 0.91% or 286.57 points.

Elixir Securities analyst Haris Ahmed Batla said volumes touched the 200-million level once again with institutional interests in cements, textiles and fertilisers.



“Moreover, the International Monetary Fund’s positive comments on the country’s economy and measures taken by administration helped gains in the wider market,” he said.

“Oils led from the front with Pakistan Oilfields (POL +5%) and Pakistan Petroleum (PPL +5%) hitting the upper price limit, while the Oil and Gas Development Company (OGDC +2%) also closed up on excitement after recent discovery and outlook on crude going forward.”

He added that volatility and volumes remained high in small-cap retail plays led by Pak Electron (PAEL +0.7%), Jahangir Siddiqui (JSCL +1.4%) and Maple Leaf Cement (MLCF +1.2%).

The analyst expected volatile trading and the benchmark to retest near the 32,000 mark. He further recommends buying ENGRO, LUCK, HASCOL, FATIMA, PTC, FABL and HUBC.

Meanwhile, JS Global analyst Arhum Ghous said the generally-undervalued banking sector also posted slight recoveries with the National Bank of Pakistan in the spotlight throughout the day.

Trade volumes rose to 256 million shares compared to 249 million on Tuesday.

Shares of 354 companies were traded on Wednesday. Of these, 151 companies declined, 190 closed higher and 13 remained unchanged. The value of shares traded during the day was Rs14.3 billion.

Pak Elektron was the volume leader with 25.3 million shares, gaining Rs0.38 to close at Rs56.35. It was followed by Jahangir Siddiqui and Company with 24.4 million shares, gaining Rs0.28 to close at Rs20.82 and Maple Leaf Cement with 23.9 million shares, gaining Rs0.72 to close at Rs59.57.

Foreign institutional investors were net buyers of Rs172 million worth of shares during the session, according to data maintained by the National Clearing Company of Pakistan.

Published in The Express Tribune, April 9^th,  2015.

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