KARACHI: The market closed on a bullish note after initial negativity with the oil and gas sector leading the advance, ending above 23,000 points after yesterday’s dip, The sentiment was led by positive news of privatisation and higher expected earnings for the cement sector.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.52% or 120.25 points to end at 23,114.97 points. Trade volumes fell to 183 million shares compared with Wednesday’s tally of 232 million shares.
“Pakistan equities managed to cover some of Wednesday’s losses to post close to above 23,000 levels as morning news of privatisation of Pakistan State Oil (PSO) and other state-owned entities lifted sentiment at the bourse,” reported Muhammad Raza Rajwani of Elixir Securities.
“Supported by cement and oil stocks the market recovered to close above 23,100,” said Samar Iqbal, head of equity sales at Topline Securites.
Anticipation of higher earnings in the cement sector pushed Maple Leaf Cement up to hit its upper price limit.
“Better earnings for the June quarter kept investors sentiment alive in the cement sector. Maple Leaf Cement closed at its upper cap with 20mn shares,” said Iqbal.
On the flipside, Engro Corporation continued to slip due to lack of clarity on gas supply timelines.
“Fauji Fertilizer Bin Qasim bucked the negative trend in the fertiliser sector as dividend hunters accumulated the sole di-ammonium phosphate (DAP) producer on improved margin scenario going forward and a prospective dividend yield of 13.5%,” said Ovais Ahsan, analyst at JS Global Capital.
Shares of 350 companies were traded on Thursday. At the end of the day 204 stocks closed higher, 100 declined while 46 remained unchanged. The value of shares traded during the day was Rs10 billion.
Maple Leaf Cement was the volume leader with 19.7 million shares gaining Rs1.29 to finish at Rs27.21. It was followed by Bank of Punjab with 15.8 million shares gaining Rs0.85 to close at Rs14.12 and Faysal Bank with 11.4 million shares gaining Rs0.60 to close at Rs11.76.
Foreign institutional investors were net buyers of Rs178.71 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, July 19th, 2013.
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