Market watch: Stocks rise with investor interest in selected companies

Benchmark 100-share index increases 269.95 points.

KARACHI: Expectation from the impending monetary policy announcement kept the momentum high at the stock market on Thursday.

Engro Fertilizers’ secondary public offering also triggered investor interest and Indus Motor evoked positive response a day after unveiling its results.

At close, the benchmark index stood at 33,729.96 points, registering an increase of 0.81% or 269.95 points.



Topline Securities analyst said the market rallied in anticipation of a lower Consumer Price Index (CPI) and expectation of a cut in interest rate in the upcoming monetary policy in spite of a long weekend. “The KSE-100 index rallied 0.8% to close at 33,730 points,” said the analyst.

Traded volumes decreased 17%, however, the value of shares increased 41% compared to Wednesday.

According to the analyst, Engro rallied after unconfirmed reports that Engro Fertilizers’ shares had been oversubscribed in private placement. As a result, Engro rose 3.5% while its fertiliser unit gained 2.4%.

Furthermore, the analyst said, Habib Bank Limited announced higher-than-expected earnings per share of Rs6.73 for the January-March quarter with a cash dividend of Rs3.50 per share.

On the other hand, Hub Power Company gained 3.4% after announcing above-consensus March quarter earnings.

According to the analyst, investors seemed enthusiastic in Indus Motor after the March results as its stock closed at the 5% upper limit, standing at Rs1,214.65.

Elixir Securities analyst Sibtain Mustafa said equities closed positive ahead of the long weekend after volatile trading amid intraday profit-taking.

Mustafa added HBL (+1.9%) rose after unveiling first-quarter earnings that grew over 63% along with a cash payout.

Cement shares were also up due to renewed interest close to the peak demand season with DG Khan up 1%, Maple Leaf 2%, Fauji Cement 2.4% and Lucky Cement 1.3%.

Trade volumes fell to 190 million shares compared to 228 million on Wednesday.



Shares of 357 companies were traded. Of these, 150 companies closed higher, 180 saw a decline and 27 remained unchanged.

The value of shares traded during the day was Rs13.1 billion.

Fauji Cement was the volume leader with 16.7 million shares, gaining Rs0.78 to close at Rs33.69. It was followed by Byco Petroleum with 15.1 million shares, losing Rs0.42 to close at Rs13.02 and TRG Pakistan with 11.3 million shares, losing Rs0.56 to close at Rs18.39.

Foreign institutional investors were net buyers of Rs564 million worth of shares during the session, according to data compiled by the National Clearing Company of Pakistan.

Published in The Express Tribune, May 1^st,  2015.

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