Market Watch: Stocks rise above 33,000 as institutions inject fresh capital

Benchmark 100-share index gains 293.31 points.

KARACHI: The stock market ended the week and month above 33,000 points as institutions as well as day players brought fresh money for investment.

At close on Friday, the Karachi Stock Exchange (KSE) benchmark 100-share index recorded a rise of 0.90% or 293.31 points to end at 33,056.79.



“Surprisingly, banking stocks drove the index to highs with MCB Bank and Habib Bank trading near their upper locks despite news that tax authorities have proposed an increase in taxes on dividend income of banks,” said Elixir Securities analyst Muhammad Zain.

“Overall, healthy volumes were seen in blue chips as well as retail favourites as the recent dull activity brought in speculators claiming budget to be a non-event for the market,” he said.

“Volatility was seen as cement and fertiliser stocks surrendered their morning gains to mid-day selling.”

He foresaw another 2-4% ride next week as bulls seemed to be gaining control over the sentiments amid high volatility.

“Relatively illiquid stocks can be expected to outperform the broader market as cheap liquidity along with growth stories in sectors like auto, pharmaceutical and consumer sectors will likely bring in speculators’ money,” Zain said.

“All in all, we foresee a significant run in the market post-budget where major institutions will likely realign their strategy for the mid-year.”

Trade volumes increased to 304 million shares compared to 148 million on Thursday.

Shares of 348 companies were traded on the last trading session of the week. Of these, 192 companies closed higher, 131 fell and 25 remained unchanged. The value of shares traded during the day was Rs13.7 billion.

K-Electric Limited was the volume leader with 27.7 million shares, gaining Rs0.19 to close at Rs7.58. It was followed by Pakistan Telecommunication Company Limited with 19.6 million shares, gaining Rs0.29 to close at Rs20.86 and Fauji Cement with 19.1 million shares, gaining Rs0.51 to close at Rs33.80.



Foreign institutional investors were net sellers of Rs286 million worth of shares during the session, according to data compiled by the National Clearing Company of Pakistan.

Published in The Express Tribune, May 30^th,  2015.

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