As investors shrugged off lethargy from the long Eidul Azha weekend, the stock market rebounded amid greater investor participation to close at a new historic high.
“With renewed buying interest from institutional clients and foreign fund managers, the market closed at yet another historic high,” said Topline Securities equity dealer Samar Iqbal. “Investors anticipate lower inflation figures for the month of October, due [to be announced] tomorrow. Bullish sentiments were further augmented after better-than-expected result announcements from Pakistan Petroleum and the Hub Power Company.”
The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 0.72% or 114.18 points to end at the 15,910.11 points level. Trade volumes surged to 136 million shares compared with Tuesday’s tally of 85 million shares. The value of shares traded during the day was Rs4.96 billion.
“Pakistan stocks closed at their highest-ever, led by oil and cement stocks, as global commodities and stocks rally in the aftermath of Hurricane Sandy,” commented Arif Habib Corp analyst Ahsan Mehanti. He also attributed the market’s optimism to the positive current account balance for the first quarter of the fiscal year, and speculation that the State Bank might announce yet another cut in its policy rate next month.
“Major activity was again seen in the cement sector with DG Khan Cement and Lucky Cement gaining 2.0% and 3.1% respectively,” reported JS Global analyst Shakir Padela. “This is likely on the back of October cement dispatch numbers due to be announced in the coming days.”
DG Khan Cement was the volume leader with 14.98 million shares gaining Rs1.04 to finish at Rs52.91. It was followed by Azgard Nine with 9.00 million shares gaining Rs0.46 to close at Rs6.97 and Askari Bank with 7.73 million shares losing Rs0.07 to close at Rs16.57.
“The Oil and Gas Development Company also managed to close the day up by 2.2% on the back of foreign buying in the script,” added Padela.
Foreign institutional investors were net buyers of Rs264.33 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, November 1st, 2012.