KARACHI: Sector-specific activity propels the market to new highs led by the index heavyweight oil and gas sector over foreign interest and expected resumption of gas supply to fertiliser industry. Moreover, easing political concerns played the role of a catalyst in bullish sentiments.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index jumped 1.04% or 166.87 points to end at the 16,218.01 point level.
Easing of political concerns after government sends letter to Swiss authorities following Supreme Court’s national reconciliation ordinance case implementation and expected resumption of gas supply to the fertiliser industry played the role of a catalyst in strengthening bullish sentiment at the local bourse, according to Arif Habib Corporation analyst Ahsan Mehanti.
The energy and power sector also attracted buying on the basis of interest from foreign investors, said JS Global Capital analyst Fahad Ali.
However, profit-taking was witnessed in cement stocks due to speculation that some companies reduced their cement prices in the north, said Samar Iqbal, equity dealer at Topline Securities.
Trade volumes climbed to 159 million shares compared with Tuesday’s tally of 129 million shares.
Shares of 357 companies were traded on Wednesday. At the end of the day 188 stocks closed higher, 112 declined while 57 remained unchanged. The value of shares traded during the day was Rs6.45 billion.
Engro Foods was up 5%, hitting its upper circuit, on the back of rumours that the Saudi Arab based dairy producer – Al Marai – was buying a stake in company, said a BMA Capital analyst note.
Engro Foods posted a profit of Rs1.62 billion for the first nine months of 2012, a staggering 300% increase over the corresponding period last year. The dairy firm’s brand umbrella constitutes of seven products – Olper’s, Olper’s Lite, Olfrute, O’more, Omung, Omung Lassi and Tarang.
DG Khan Cement was the volume leader with 12.31 million shares losing Rs0.52 to finish at Rs52.68. It was followed by Engro Foods with 10.8 million shares gaining Rs3.83 to close at Rs80.43 and Maple Leaf Cement with 10.17 million shares rising Rs0.19 to close at Rs10.17.
Foreign institutional investors were net buyers of Rs206 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, November 8th, 2012.
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