Market watch: Stock market rebounds as international investors return

Benchmark KSE-100 index rises 526 points.

KARACHI: The stock market rebounded on Thursday on international buying as investors returned after plans to taper off America’s quantitative easing programme didn’t materialise.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 2.3% or 526.92 points to end at 23,456.98 points.

“The global equity bull-run after the Fed’s statement to prolong injection worth $85bn portrayed a positive picture for the investors,” said Mujtaba Barakzai of JS Global.

“The banking sector was in the limelight as the recent interest rate hike of 50bps was eyed as a sentiment booster for the core income of the sector. The cement sector also continued its rally as cement manufacturer’s price arrangement remains intact which can lead to a hike in cement prices by Rs5-15 per bag in days to come. Moreover, news on MOL to add in 145mmcfd of gas from TAL block also invited fresh investment in the exploration and production sector,” said Barakzai.



“Pakistan equities regained momentum, surging by more than 526 points to close above 23,450 after interest by foreign investors and tracking gains in regional markets, after the US Federal Open Market Committee failed to announce plans to reduce the pace of its asset purchases.” Said Jawwad Aboobakar of Elixir Securities.

“Oil and Gas Development (OGDC PA +3.7%) continued its dominance while interest rate hike excitement in financials kept investor interest alive as most banks. Despite rumored gas price hike for fertilisers in the coming days and possible gas supply issues in the winter months, reported institutional buying in Engro Corp ENGRO PA +5% pushed the stock to its upper price limit.” Aboobakar added.

Trade volumes rose to 253 million shares compared with Wednesday’s tally of 222 million shares.



Shares of 366 companies were traded on Thursday. At the end of the day 224 stocks closed higher, 104 declined while 38 remained unchanged. The value of shares traded during the day was Rs8.9 billion.

Bank of Punjab was the volume leader with 28.2 million shares gaining Rs0.46 to finish at Rs13.1. It was followed by NIB Bank Limited with 19 million shares gaining Rs0.33 to close at Rs2.67 and National Bank with 15.2 shares gaining Rs2.62 to close at Rs55.08.

Foreign institutional investors were net buyers of Rs621 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, September 20^th,  2013.

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