Market Watch: Bourse rallies to four-year high as sentiments soar

Benchmark KSE-100 index gains 126 points.


Our Correspondent March 29, 2012

KARACHI: The stock market continued its upward drive on Wednesday – closing at a four-year high after broad bull rallies in cement, textile and oil stocks – as rumours of Finance Minister Abdul Hafeez Shaikh’s possible visit to the Karachi Stock Exchange (KSE) early next week piqued investor interest.

The KSE’s benchmark 100-share index rose 0.93% or 125.68 points to end at the 13,575.41 point level.

According to Elixir Securities Analyst Faisal Bilwani, higher institutional participation from fund managers eager to catch up to major gainers pushed up prominent names and bluchips on Wednesday. Investors are rushing to hold profitable positions ahead of the announcement of first quarter earnings. Financials continue to attract attention as investors are banking on significant improvements in asset quality, said Bilwani. National Bank of Pakistan hit its second upper limit in two days, while MCB also gained 1.8% on reports of foreign buying. In other sectors, Engro Foods attracted local interest and hit the 5% upper price limit, while its parent company Engro Corp remained out of favour; depreciating 0.7% on concerns over first quarter earnings. Meanwhile, Hub Power Company also hit its upper limit.

Trade volumes surged to 450 million shares compared with Tuesday’s tally of 353 million shares. The value of shares traded during the day was Rs9.09 billion.

Bank of Punjab was the volume leader with 36.29 million shares losing 8.72% or Rs1.00 to finish at Rs10.47. It was followed by Azgard Nine Limited with 32.83 million shares losing 5.57% or Rs0.55 to close at Rs9.32 and Jahangir Siddiqui Company Limited with 31.71 million shares gaining Rs0.79 to close at Rs22.39.

Foreign institutional investors were buyers of Rs218.48 million and sellers of Rs274.22 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, March 29th, 2012.

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