KARACHI: The country’s largest bourse resumes its assault on record highs, touching all-time high on the first day of the week with buying across various sectors on earnings optimism. The energy sector was on a roll ahead of the new energy policy approval due today.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 0.98% or 228.88 points to end at 23,657.81 points. Trade volumes climbed to 327 million shares compared with Friday’s tally of 238 million shares.
The index touched new high on the first session of the week with various sectors participating in the rally as investors continue to buy in earnings optimism.
“Major contributors to gains were index heavy power stocks ahead of the new energy policy approval by the Council of Common Interests due today and the federal cabinet later this week,” reported Fareesa Baig, analyst at Elixir Securities.
Energy and power, oil marketing companies and the cement sector were in the limelight and led the rally. Oil and Gas Development Company, Pakistan State Oil and Pakistan Petroleum were the leaders of the pack.
“Throughout the day, selling pressure was witnessed in the banking sector where investors preferred booking gains and switching positions to the cement sector,” said Fahad Ali, analyst at JS Global Capital. However, index heavy financial scrips MCB Bank and Habib Bank rallied due to continued positive sentiments backed by rumours of possible lower minimum savings rate.
Telecom sector made a comeback after renewed interest of investors in Pakistan Telecommunication Company due to renewed interest after recent cash payout and optimism on earnings in the coming quarters.
Fertiliser sector remained under pressure on Monday where Engro Corporation managed to hit its upper circuit in the morning session, but then lost ground to close up 1.3%.
Shares of 363 companies were traded on Monday. At the end of the day 190 stocks closed higher, 135 declined while 38 remained unchanged. The value of shares traded during the day was Rs13.37 billion.
Bank of Punjab was the volume leader with 63.07 million shares losing Rs0.05 to finish at Rs15.02. It was followed by Fauji Cement with 38.67 million shares gaining Rs0.57 to close at Rs14.95 and Pakistan Telecommunication Company with 26.09 million shares gaining Rs1.24 to close at Rs26.8.
Foreign institutional investors were net buyers of Rs613 million, according to data maintained by the National Clearing Company of Pakistan.
Published in The Express Tribune, July 23rd, 2013.
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