Market watch: Stocks post moderated gains as bulls take to sidelines

Benchmark KSE-100 index adds 69 points.

Our Correspondent July 09, 2012


The previous week’s bull-run eased on Monday, as investors seemed more relaxed in a market that seesawed from the red territory in early hours of trading, to mark gains by the end of the closing session.

Analyst Hasnain Asghar Ali said that negativity in the early sessions was attributable to speculation on the political outcomes of the Difa-e-Pakistan rally headed towards Islamabad; and State Bank reports indicating substantial government borrowing. “However cautious accumulation on discounts turned loud in the post-midday session, mainly in anticipation of healthy corporate earnings.”

“Rising value of the Pakistani rupee – in expectation that US dollar inflows will soon materialise after reopening of Nato routes – positively affected local equity prices,” added Topline Securities equity dealer Samar Iqbal.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index climbed 0.48% or 69.36 points to end at the 14,379.54 points level. Trade volumes dropped marginally to 90 million shares compared with Friday’s tally of 94 million shares. The value of shares traded during the day was Rs3.80 billion.

“Positive statements from the US administration regarding the mechanism for disbursement of Coalition Support Funds ... supported the index,” informed JS Global analyst Shakir Padela.

Shares of 348 companies were traded on Monday. At the end of the day 137 stocks closed higher, 99 declined while 112 remained unchanged.

“The cement sector ended the day higher, after promising sales figures for last month – coupled with expectations of cash payouts with final results this quarter – kept investors interested,” reported Padela. “The Oil and Gas Development Company ended the day up 1.3% due to expectations of a good full-year result and rumoured local institutional buying in the script.”

“The cement sector remained in the limelight amid expectations that international pledges for Afghanistan will help boost exports from Pakistan,” commented Iqbal.

Jahangir Siddiqui Company was the volume leader with 13.50 million shares gaining Rs0.73 to finish at Rs14.24. It was followed by DG Khan Cement with 12.51 million shares gaining Rs0.74 to close at Rs43.46 and Engro Foods with 9.83 million shares gaining Rs2.85 to close at Rs70.78.

Foreign institutional investors were net buyers of Rs224.53 million ($2.36 million), according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, July 10th, 2012.


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