KSE 100 index jumped 0.97% or 188.91 points to end at the 19,661.46 points level.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index jumped 0.97% or 188.91 points to end at the 19,661.46 points level. Trade volumes were lower at 234 million shares, compared with Wednesday’s tally of 252 million shares, and the value of shares traded during the day clocked in at Rs8.14 billion.
Foreign institutional investors (FIIs) were net buyers of Rs787.68 million worth of securities, according to data maintained by the National Clearing Company of Pakistan Limited.
“Like yesterday, Mansha [Group] stocks (MCB Bank, DG Khan Cement) were in demand, with MCB Bank closing at its upper circuit as the group is anticipated to be the largest beneficiary of a regime change,” reported Elixir Securities analyst Muhammad Raza Rawjani. “Cements, which had been laggards until last week, played catch up; with the sector gaining 1-3% today in prices. Engro Corporation gained on rumours of buying interest of state institutions,” he added.
“Pakistan Petroleum was the second largest positive contributor to the index, rallying 1.5% as participants appreciated the company’s first mover’s advantage of exploring tight and shale gas potential in Pakistan,” reported Ovais Ahsan from JS Global Capital.
Jahangir Siddiqui and Company was the volume leader with 21.64 million shares, gaining Rs0.95 to finish at Rs11.45. It was followed by Lotte Chemical with 15.56 million shares, gaining Rs0.03 to close at Rs7.80; and TRG Pakistan with 14.93 million shares, gaining Rs0.68 to close at Rs9.46.
“FIIs continued to be aggressive buyers in the market, trumping the cautious, wait-and-see approach of local institutions,” observed Ahsan. “The market continues to be dominated by foreign bulls, and a relatively peaceful election will open the gates for a bigger herd of them,” he added.
Published in The Express Tribune, May 10th, 2013.
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@Bubba
Sir, This is the stock market not a mathematics problem. For any stock with a face value of PKR 10 (thats $0.1), a change of PKR 0.95 (10% of face value) is NOT insignificant.
@Saan.
The law of the small denominator - in this case a change which approximates zero equals 10% - tells you something about the aggregate market value of the Company and a good example of why this stock and it's movement shouldn't be used to judge outside investors confidence in Pakistan's economy.
@Bubba: the gain is close to 10%. Currency values are irrelevant when it comes to markets, only the percentage changes matter.
@gp65: Bullish trend is when there is a net inflow of capital (based on hopes of a continuing upward swing). Any positive inflow denotes a bullish trend, again, regardless of the currency values.
I hope this explanation eases some doubts.
Jahangir Siddiqui and Company was the volume leader with 21.64 million shares, gaining Rs0.95 to finish at Rs11.45. . Dear correspondent - that amounts to a gain of zero in US currency and a stock which sell for a whopping 11 cents. Not sure I would use this as an example of the outside World's confidence in the Pakistan economy.
"Foreign institutional investors (FIIs) were net buyers of Rs787.68 million worth of securities, "
As far as I can tell this amounts to an investment of arond $8 milion. The total turnover on the country's premier exchange was $80 million. Is that considered bullish? What am I missing?