Rumours of foreign interest in blue chips kept the market kicking as cement and telecommunication sector were favoured, with healthy result expectations lined up, says analyst.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 0.32% or 60.55 points to end at the 18,713.61 point level. Trade volumes improved marginally to 128 million shares compared with Monday’s tally of 124 million shares.
“The market closed above (the) 18,700 points mark on optimism about healthy March quarter results,” said Samar Iqbal, head of equity sales at Topline Securities.
“Renewed buying interest was seen in Engro Corporation amid hopes of additional gas supply, while cherry picking was witnessed in telecom and cement stocks.”
Rumours of foreign interest in blue chips kept the market kicking as cement and telecommunication sector were favoured, with healthy result expectations lined up, said Mujtaba Barakzai, analyst at JS Global Capital.
The value of shares traded during the day was Rs5.49 billion.
“Small to mid tier stocks remained in the limelight, reflecting institutional and foreign interest which pushed Engro Corporation, Lucky Cement and Pakistan Oilfields to new highs,” reported Mujtaba Rawjani, analyst at Elixir Securities.
The auto sector attracted buying, with most of the stocks closed near upper limits as investors expect a declining Japanese yen to boost auto sector’s profits this quarter.
Engro Corporation was the volume leader with 15.18 million shares gaining Rs5.76 to finish at Rs142.06. It was followed by Wateen Telecom with 10.8 million shares gaining Rs0.11 to close at Rs4.46 and Maple Leaf Cement with 8.15 million shares climbing Rs0.27 to close at Rs19.32.
Foreign institutional investors were net buyers of Rs273.62 million, according to data maintained by the National Clearing Company of Pakistan Limited.
With the results season expected to kick in soon, volumes and investors sentiments at KSE are bound to increase. Gas supply excitement surrounding fertiliser will keep the sector upbeat following an end to winter, while cements will also fetch interest on earnings excitement.
Published in The Express Tribune, April 10th, 2013.
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