Market Watch: Market rallies on IMF growth forecasts, better earnings

Benchmark KSE-100 index gains 174 points.


Our Correspondent April 19, 2012

KARACHI: Wednesday saw positivity in the stock exchange; the bulls rallied once again on rumours of the signing of the capital gains tax ordinance over the weekend, positive economic outlook forecasts by the International Monetary Fund (IMF) and expectations of better earnings results for the quarter.

“Bullish activity in Asian stocks after IMF boosted [its] global growth forecast, and higher global commodities [prices] played a catalyst role in bullish sentiments,” said Ahsan Mehanti, director at Arif Habib Corp.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 1.26% or 173.73 points to end at the 13,964.43 point level.

Trade volumes were lower at 261.52 million shares compared with Tuesday’s tally of 269 million shares. The value of shares traded during the day was Rs6.97 billion.

“Cement sector was in the limelight as Lucky Cement and DG Khan Cement (DGKC) performed by 4.3% and 4.8% respectively. However, DGKC’s result was less than market expectations,” said JS Global Analyst Mujtaba Barakzai. Lucky Cement closed at Rs132.67, while DGKC was one of the volume leaders for the day.

“Pakistan Oilfields (POL) remained strong on good estimated earnings growth and compelling valuations. POL and the Oil and Gas Development Company (OGDC) were up by 2.0% and 1.4% respectively. Amongst fertilisers, Engro witnessed weak sentiments after rumours of a gas shutdown,” he added. POL closed the day at Rs379.68 while OGDC closed at Rs166.28.

Fauji Cement was the volume leader with 32.02 million shares losing a marginal 0.14% or Rs0.01 to finish at Rs7.10. It was followed by Lafarge Pakistan with 25.37 million shares gaining 6.46% or Rs0.33 to close at Rs5.44 and DGKC with 22.56 million shares gaining 4.78% or Rs1.89 to close at Rs41.41.

Foreign institutional investors were buyers of Rs450.86 million and sellers of Rs605.02 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, April 19th, 2012.

COMMENTS (1)

Meekal Ahmed | 11 years ago | Reply

I don't think the IMF's assessment can be termed "positive"! But if the markets think so, that is fine.

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