Market watch: Stock market continues upward trend

Benchmark KSE-100 index rises 215.62 points.

KARACHI: The stock market rebounded after falling at the start of the week to regain ground lost on Monday.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.99% or 215.62 points to end at the 22,080.47-point level.

“The KSE-100 index managed to close 1% higher albeit on low volumes as leading institutional investors continue to stick to the sidelines,” said Muhammad Sibtain Mustafa of Elixir Securities.

“Overall, banks found grounds with Habib Bank (HBL PA +3.5%) and MCB Bank (MCB PA +2.8%) leading the sector as rumours of fixing of saving rate at 6.5% made rounds. Furthermore, Pakistan State Oil (PSO PA +2%) was sought after as oil sales rose for the second consecutive month along with electricity tariffs to be increased after National Electric and Power Regulatory Authority will likely present summary for rates hike by 30% in the coming weeks, hence reining in the oil sector because of (reduced) circular debt”, Sibtain added.



“The market bounced back today led by the banking sector with MCB Bank (+2.9%) ,United Bank Limited (+2.1%) and National Bank of Pakistan (+3.2%) gaining on rumours of the State Bank offering some respite on the minimum deposit rate,” said Ovais Ahsan of JS Global.

“Hopes were rekindled on the privatisation front with news of the government announcing a comprehensive strategy in a week’s time to sell off equity in 31 public sector entities, breathing life into companies like Pakistan State Oil (+1.8%) and Oil and Gas Development Company (+0.6%),” Ahsan added.

Trade volumes rose to 93 million shares compared with Monday’s tally of 84 million shares.

Shares of 322 companies were traded on Tuesday. At the end of the day 161 stocks closed higher, 137 declined while 24 remained unchanged. The value of shares traded during the day was Rs2.8 billion.



TRG Pakistan was the volume leader with 11.2 million shares losing Rs0.88 to finish at Rs8.91. It was followed by Bank of Punjab with 7.2 million shares gaining Rs0.1 to close at Rs10.77 and Pak Elektron Limited with 5.5 million shares staying steady at Rs4.29.

Foreign institutional investors were net buyers of Rs51 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, October 9^th, 2013.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.