Market watch: Market gains 0.96% as IMF deal materialises

Investors maintain positive outlook from IMF deal.


Our Correspondent July 05, 2013
Investors maintain positive outlook from IMF deal.

KARACHI:


The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 0.96% or 211.38 points to end at the 22,178.34 points level.


Trade volumes rose to 356 million shares, compared with Thursday’s tally of 318 million shares. The value of shares traded during the day was Rs8.95 billion.

“The market continued its uptrend after (Pakistan’s) reentering into the IMF program,” said Senior Manager Equity Sales at Topline Securities (Pvt) Ltd Samar Iqbal. “Interest in oil sector, Independent Power Producers and Pakistan Telecommunications Company (PTC) helped market to close above 22,000 points.”



Shares of 353 companies were traded on Friday. At the end of the day, 208 stocks closed higher, 114 declined, while 31 remained unchanged. The Karachi Electric Supply Company was the volume leader with 70.37 million shares, gaining Rs0.81 to finish at Rs7.90. It was followed by Pakistan Telecommunication Company with 25.13 million shares, gaining Rs1.17 to close at Rs25.07; and IGI Investment Bank with 16.94 million shares, gaining Rs0.71 to close at Rs2.63.

“Banks geared up momentum after the government closed a deal with the IMF for $5.2bn as investors expect recent declines in policy rate to halt. Furthermore, with the inking of the IMF deal, there will likely be measures to eliminate subsidies and other fiscal tightening policies which can push inflation higher.” said Elixir Securities analyst Muhammad Sibtain Mustafa.



Bull market drivers

Pakistan stocks continued bullish trend following IMF approval on $5.3bn Extended Fund Facility for Pakistan
for next three years, said Ahsan Mehanti from Arif Habib Corp, adding that that rally was led by oil, energy and banking stocks on rising global commodities amid hopes for energy
deals, investment and improved bilateral relations with China.

“Higher cement sales annual data, foreign interest in blue chip stocks and speculations on early resolutions of circular debt issues in energy sector played a catalyst role in bullish activity in the earnings announcement session at KSE.” He said.

Published in The Express Tribune, July 6th, 2013.

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