KARACHI:
With May safely behind, the stock market stepped into June on a positive note, led by the oil and cement sectors and improving sentiment, as budgetary information leaked into the market.
Oil stocks were in the limelight on hopes of better earnings announcements, while cement scrips attracted attention after the government hinted at enhancing the Public Sector Development Programme, which will lead to higher demand. The market, however, closed with pared gains as some investors chose to book profits before the weekend and hedged their bets prior to the official budget announcement.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 0.66% or 90.35 points to end at the 13,876.97 point level.
“Market recovered in the pre-budget session amid hopes that the gains tax ordinance will finally become part of the finance bill,” reported Topline Securities equity dealer Samar Iqbal.
“Exploration and Production companies led by Pakistan Oilfields remained in the limelight after the company informed stock exchanges of a hydrocarbons discovery in Makori East 2 field, which will have a positive impact on earnings,” informed JS Global analyst Jawad Khan. “Cement stocks also witnessed some excitement ... over reports that the Federal Excise Duty on cements will be cut by Rs100 to Rs400 per ton.”
Trade volumes shrunk to 107 million shares compared with Thursday’s tally of 125 million shares. The value of shares traded during the day was Rs4.09 billion.
“Overall, volumes remained subdued as leading participants await the budget speech due [Friday] evening,” apprised Sibtain Mustafa, an analyst at Elixir Securities.
Shares of 354 companies were traded on Friday. At the end of the day 193 stocks closed higher, 82 declined while 79 remained unchanged.
DG Khan Cement was the volume leader with 11.93 million shares gaining Rs1.47 to finish at Rs42.61. It was followed by Fauji Cement with 10.49 million shares gaining Rs0.29 to close at Rs6.44 and Engro Corp with 6.18 million shares losing Rs0.97 to close at Rs106.63.
Foreign institutional investors net buyers of Rs302.81 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, June 2nd, 2012.
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