Market watch: Index continues upward trend on GSP Plus, ECC meeting

Benchmark KSE-100 index rises 374 points.

KARACHI: The stock market remained upbeat for the second day in a row as positive news flowed in from various sectors.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 1.64% or 374.51 points to end at 23,165.21 points.

“Pakistan equities rallied for the second consecutive day led by textiles after the European Parliament Committee paved way for grant of GSP plus status to Pakistan. Textile giants Nishat Mills (NML PA +5%) and Nishat Chunian (NCL PA +5%) spent the day at their upper price limits keeping broader market momentum alive from yesterday,” said Jawwad Aboobakar of Elixir Securities.



“Engro Corp (ENGRO PA +5%) hit its second consecutive upper limit on morning news of the Economic Coordination Committee that is likely to give go-ahead to a plan that will allocate 130 million cubic feet per day to fertiliser plants from Oil and Gas Development Company’s (OGDC PA +0.3%) Kunnar Pasakhi Deep field,” Aboobakar added.

“Positive news flowed in today from different sectors which helped the market cross the 23,000 psychological level to close up by 375 points,” said Fahad Ali of Elixir Securities.

“The GSP Plus status (granted today) will provide Pakistan duty free or preferential duty rate access on 3,500 products to EU markets where currently Pak textile exports to the EU draw an 11% duty. News regarding restoration of gas supply to fertilizer plants stirred interest of local and foreign investors in stocks like ENGRO, Fauji Fertilizer and Fatima Fertilizer. Pakistan State Oil managed to hit its upper circuit at day end on the back of news of revision in oil marketing company margins,” Ali said.

Trade volumes rose to 165 million shares compared with Tuesday’s tally of 87 million shares.



Shares of 307 companies were traded on Wednesday. At the end of the day 230 stocks closed higher, 94 declined while 19 remained unchanged. The value of shares traded during the day was Rs8.3 billion.

Pakistan Telecommunication Company Limited was the volume leader with 21.2 million shares gaining Rs1.12 to finish at Rs27.38. It was followed by Fauji Cement with 9.6 million shares gaining Rs0.58 to close at Rs11.92 and Bank Al Falah with 8.2 million shares gaining Rs0.44 to close at Rs24.6.

Foreign institutional investors were net buyers of Rs454 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, November 7^th, 2013.

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