Market watch: Stock market continues record-breaking streak

Cement sector helps index cross 18,300 points.


Our Correspondent April 02, 2013
Trade volumes rose to 225 million shares, compared with Monday’s tally of 171 million shares. PHOTO: FILE

KARACHI: Investors at the stock market continued to capitalise on news of easing inflationary pressure, taking new positions on the second day of trading for the month to take the bourse to another unprecedented high.

Topline Securities’ Senior Manager Equity Sales Samar Iqbal pointed out the rally was led mainly by the cement sector amid expectations of better earnings in March. “Likely appointment of [a] federal finance minister also helped boost sentiments,” she added.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index climbed 0.40% or 73.63 points to end at the 18,345.74 points level, an all-time high. Trade volumes rose to 225 million shares, compared with Monday’s tally of 171 million shares. The value of shares traded during the day was Rs8.21 billion.

“Equities continued their upward drive to mark another new high, as renewed foreign interest along with institutional activity kept momentum upbeat,” reported Sibtain Mustafa from Elixir Securities. “However, morning gains ended down with marginal highs, as state institution selling kept bulls reined in. Almost all sectors did contribute their part, with the exception of banks, which remain out of favour as first quarter earnings outlook remains dismal owing to lower net interest margins,” he added.

Shares of 366 companies were traded on Tuesday. At the end of the day, 130 stocks closed higher, 178 declined, while 58 remained unchanged. Fauji Cement was the volume leader with 36.44 million shares, gaining Rs0.28 to finish at Rs8.77. It was followed by Maple Leaf Cement with 29.26 million shares, gaining Rs0.92 to close at Rs19.68; and Lafarge Pakistan with 24.82 million shares, gaining Rs0.42 to close at Rs7.00.

“Low March consumer price index of 6.57%, attractive dividend yields, and anticipation of strong corporate earnings growth helped the index continue its upwards momentum,” said Mujtaba Barakzai, analyst at JS Global Capital. “Rumours of foreign flows continue to build investors’ confidence even at the highest levels, as the market is still cheap versus the region. Political certainty with the interim cabinet in place, and the appointment of a decent finance minister has given a clearer picture to investors in the run-up to general elections,” he added.

Foreign institutional investors were net buyers of Rs135.27 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, April 3rd, 2013.

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