KARACHI: The stock market started the week on a positive note following the central bank’s decision to slash the discount rate much more than market expectations.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 1.02 per cent or 150.48 points to end at 14,911.97 point level.
The State Bank of Pakistan (SBP) on Friday evening surprised the market and reduced the policy rate by 150 basis points to 10.5%. Trade volumes surged to 193 million shares compared with Friday’s tally of just 36 million shares.
The positive sentiment from the rate cut was further backed by Pakistan Petroleum Limited’s payout along with its earnings, said JS Global Capital analyst Shakir Padela. The oil and gas explorer surged to its upper circuit of 5% to Rs215.34 after it announced a bonus dividend of 25% and final dividend of Rs6.5 per share.
Pakistan Oilfields also ended the day on its upper circuit as investors chose to build positions on the basis of stellar results from other companies in the industry. Oil and Gas Development Company reported 52% increase in net profit to Rs96.9 billion while PPL profits surged 30% to Rs40.9 billion
Foreign institutional investors were net buyers of Rs83 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.
Shares of 183 companies were traded on Monday. At the end of the day 183 stocks closed higher, 89 declined while 41 remained unchanged. The value of shares traded during the day was Rs6.7 billion.
Karachi Electric Supply Company was the volume leader with 19.6 million shares gaining Re1 to finish at Rs5.27. The company’s share is being heavily accumulated by investors following its announcement of profits after six years. The electric supplier posted net profit of Rs2.62 billion in fiscal 2012 compared with loss of Rs9.4 billion in the same period a year ago.
It was followed by DG Khan Cement with 17.6 million shares firming Rs2.04 to close at Rs49.17 and Bank Alfalah with 14.7 million shares declining Rs0.61 to close at Rs16.99.
Published in The Express Tribune, August 14th, 2012.
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