Benchmark
100-share index
rises 121.27 points
At close, the Karachi Stock Exchange (KSE) benchmark 100-share index recorded a rise of 121.27 points or 0.34% to end at 36,205.94.
According to Elixir Securities analyst Faisal Bilwani, MCB Bank (+0.6%) closed higher despite announcing earnings that were below estimates, but dividend payout saved the day. Pakistan Petroleum Limited (+1.7%) led the chart of index-movers on volumes last seen in mid-July.
“Small and mid-caps dominated the volumes chart with most names positive as retail investors and profit-booking continued to contribute to volumes in hunt for a quick gain while institutions remained selective buyers in index names,” Bilwani said.
“The benchmark is expected to test new record highs with volatility ahead of a long weekend. Cement and bank shares remain our picks while oil stocks will track global crude.”
JS Global analyst Ahmad Saeed Khan was of the view that the market had shunned its negative trajectory in the last two sessions.
“Major support for the day came from the two biggest sectors; banks and oil,” he said. “As Brent crude shot up to trade above $50, the oil sector as a whole rallied with the exception of Attock Refinery and National Refinery that remained negative throughout the day.”
Star stocks of the day were PSO (+1.2%), Hascol (+5%) and Pakistan Oilfields (+1.5%).
The auto sector remained unusually depressed as profit-taking was witnessed in selected companies. The biggest laggards of the sector were Hino (-5%) and Pak Suzuki Motor Company, he said.
“Positivity in the banking sector started after the session’s midpoint as MCB announced a Rs4 per share dividend and an EPS of Rs12.17 in 1H2015 vs the expected Rs11.66 per share,” added Khan. Major gainers of the sector were UBL (+0.7%) and ABL (+0.9%).
Shares of 405 companies were traded during the day. Of these, 210 companies closed higher, 167 fell and 28 remained unchanged.
Trading volumes increased to 328 million shares compared to 264 million on Monday.
Lotte Chemical was the volume leader with 38.3 million shares, gaining Rs0.68 to finish at Rs9.17. It was followed by Pace Pakistan with 32 million shares, gaining Rs0.79 to close at Rs7.20 and Silkbank (R) with 23.5 million shares, losing Rs0.02 to close at Rs0.20.
Foreign institutional investors were net sellers of Rs225 million worth of shares during the session, according to data compiled by the National Clearing Company of Pakistan.
Published in The Express Tribune, August 12th, 2015.
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