Business

Market watch: Stock market rallies on positive news from PM’s US visit

Benchmark 100-share index <br /> rises 475 points to 22,230.

Our Correspondent October 22, 2013

Volumes were sharply up with reported buying by foreigners and local institutional activity in index names while retail participants continued to hunt day-trade opportunities. PHOTO: PPI/FILE

KARACHI: The stock market rallied for the second day on Tuesday following long holidays on optimism after positive news from ongoing visit of Prime Minister Nawaz Sharif to the United States.

The benchmark KSE 100-share index rose 475 points to 22,230 points while volume was 167 million shares.

Resumption of military assistance, investment commitments and overall warmer relations with the US were fuelling the current euphoria on the KSE while quarterly corporate earnings were also bringing focus back to fundamentals, Elixir Securities said in a report.

Volumes were sharply up with reported buying by foreigners and local institutional activity in index names while retail participants continued to hunt day-trade opportunities.

Key drivers included index-heavy financial and energy stocks while cement shares gained sharply as quarterly earnings continued to excite investors that were somewhat concerned over margins following a bumper last year.

“With the KSE-100 closing above the key resistance at 22,000 and a busy week on earnings announcement front, we see the mood remaining upbeat and interest in broader market alive mainly in cement, textile and telcos. Having said this, one cannot rule out profit-taking in financial and energy stocks at strength,” the research house said.

According to results announced during the day, Engro Foods’ earnings were below estimates for nine months of 2013 with earnings per share at Rs1.62, down 23% year-on-year. Earnings for the July-September quarter clocked in at Rs0.17 per share, down 78%.

DG Khan Cement announced 1Q earnings at Rs2.44 per share, down 26% year-on-year and 15% quarter-on-quarter, and significantly lower than analyst consensus.

PTCL announced nine-month earnings at Rs2.21 per share and earnings for the quarter clocked in at Rs0.67 per share.

Pakistan Oilfields announced 1Q financial results that were in line with expectations with EPS at Rs15.25, up 41% year-on-year.

Attock Cement 1Q earnings were Rs3.69 per share, up 18% year-on-year but down 36% quarter-on-quarter and below expectations.

Published in The Express Tribune, October 23^rd, 2013.

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