Fauji Cement was the volume leader with 26 million shares, gaining Rs 0.66 to finish at Rs 12.86. PHOTO: PPI/FILE
KARACHI: Led by the cement industry and the general euphoria over the monetary policy announced last week, the stock market picked up on Monday.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 1.39%, translating into an increase of 324.18 points, to end at 23,611.24 points.
“Pakistan equities traded positive and closed above 1.2%,” said Fareesa Baig of Elixir Securities. “This was due to the investor’s cheery and broader market sentiment being upbeat at policy rate hike that was in line with expectations at 50 basis points, announced after markets closed before the long weekend.
“Financials traded lacklustre, closing marginally in red while cements saw heightened investor interest with DG Khan Cement (DGKC PA +3%) and Lucky Cement (LUCK PA +1.2%) gaining strength as fears of an even higher rate hike subsided and on positive news flow over subsidised housing scheme.
“Energy names, however, were the main index drivers, with Oil and Gas Development (OGDC PA +1.5%), Pakistan Petroleum (PPL PA +1.4%) and Pakistan State Oil (PSO PA +3.6%) that gained momentum. This was backed by heightened foreign interest and developments in the sector with news of revision in the petroleum policy and the International Monetary Fund pressing Pakistan to kick-start privatisation.”
Meanwhile, JS Global Securities analyst Ovais Ahsan termed the banking sector the ‘obvious loser’. “Engro Corporation (+4.8%) rallied to limit up price as pre-IPO/Book building excitement for its fertiliser spin-off drove the frenzy,” said Ahsan. “However, the banking sector was the obvious loser today as the rate hike was not above expectation and the central bank’s guidance on inflation was tamed to 10.50-11% from previous expectations of 11-12%.”
The major losers in the sector were MCB Bank (-0.6%), National Bank of Pakistan (-1.4%) and United Bank Limited(-0.6%).
On the other hand, trade volumes rose to 167 million shares compared with Wednesday’s tally of 114 million shares.
Shares of 316 companies were traded on Monday. At the end of the day 189 stocks closed higher, 94 declined while 33 remained unchanged. The value of shares traded during the day was Rs 8.4 billion.
Fauji Cement was the volume leader with 26 million shares, gaining Rs 0.66 to finish at Rs 12.86. It was followed by Engro Corporation with 11 million shares, gaining Rs 6.82 to close at Rs 149.79 and The Bank of Punjab with 9.9 million shares losing Rs 0.30 to close at Rs 11.28.
Foreign institutional investors were net buyers of Rs 329 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, November 19th, 2013.
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