Shares of 376 companies were traded on Tuesday. At the end of the day 237 stocks closed higher, 105 declined while 34 remained unchanged. PHOTO: INP
KARACHI: After Monday’s fall, the Karachi bourse rebounded breaching its way to another historic high. The recovery was led by foreign buying, with hopes rising of an early resolution to the energy crisis. It is the first time in history that the benchmark KSE-100 index has touched the 21,500-point level.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index surged 2.59% or 542.86 points to end at 21,501.72 point level. Activity picked up as trade volumes grew to 305 million shares compared with Monday’s tally of 235 million shares.
“Though the day started on a subdued note, bullish sentiments prevailed as most participants remained confused after Monday’s decline. Investors enjoyed a good day at the bourse as they played along with the upward momentum helped by the oil and banking sectors,” reported Sibtain Mustafa, analyst at Elixir Securities.
Aggressive buying was seen in heavyweights Pakistan State Oil, Oil and Gas Development Company and Pakistan Petroleum over expectation of early resolution of the energy crisis, easing up circular debt and boost in cash flows of the power sector, said Samar Iqbal, head of equity sales at Topline Securities.
According to Hub Power Company CEO Zafar Iqbal Sobani, the circular debt is currently in the range of Rs500 billion.
MCB Bank, a favourite with foreign investors, also rallied and touched its upper lock, Iqbal added.
Shares of 376 companies were traded on Tuesday. At the end of the day 237 stocks closed higher, 105 declined while 34 remained unchanged. The value of shares traded during the day was Rs10.89 billion.
Dewan Cement was the volume leader with 43.84 million shares gaining Rs0.92 to finish at Rs8.44. It was followed by Bank of Punjab(R) – listed rights issue shares – with 26 million shares gaining Rs0.14 to close at Rs2.42 and Fauji Cement with 16.4 million climbing Rs0.4 to close at Rs11.86.
Foreign institutional investors were net buyers of Rs694 million, according to data maintained by the National Clearing Company of Pakistan.
Analysts highlight that the market pundits and participants were of the view that index was appreciating the political transition and celebrating the incoming prime minister. However, they advise caution as the KSE will incorporate upcoming budget’s anomalies and other economic challenges.
Published in The Express Tribune, May 29th, 2013.
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