Market Watch: Stock market continues upward trend

Published: November 20, 2013
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A stock broker during the trading session on Monday. The exchange carried the upward trend on Tuesday. PHOTO: ONLINE

A stock broker during the trading session on Monday. The exchange carried the upward trend on Tuesday. PHOTO: ONLINE

KARACHI: The market continued its upward trend on the second day of the week with the Karachi Stock Exchange’s (KSE) benchmark 100-share index rising 0.88% or 208.19 points to end at 23,819.43.

There was also optimism, according to an analyst, that the rise would continue.

“The Karachi Stock Exchanged experienced a record-breaking closing rate,” said Fahad Ali of JS Global Securities. “The upward movement continued and break outs were seen in quite a few stocks like Nishat Mills and Pakistan Telecommunications Company Limited (PTCL), indicating that the rise would continue.

“Rumours of foreign interest continued in the market. Today was the first day of book-building for Engro Fertilizer which also developed a positive interest in Engro Corporation.”

Engro Corporation’s stock price has been rising recently on excitement over the IPO, repeatedly hitting its upper lock.

Another analyst credited foreigners’ interest in the market.

“Stocks have been surging of late as foreigners continue to hunt value opportunities and take advantage of locals’ skepticism,” said Faisal Bilwani of Elixir Securities.

“Engro Corporation (ENGRO PA +2.9%) led from the front as book building of the company’s fertilizer subsidiary started today while telecom giant PTCL (+5%) also attracted attention, trading over 26 million shares and hit its upper price limit on earnings optimism and reported foreigners buying. Activity in financials was somewhat limited as gains in lagging textiles, cements and energy stocks kept attention diverted.”

Trade volumes rose to 209 million shares compared with Monday’s tally of 167 million shares.

Shares of 343 companies were traded on Tuesday. At the end of the day, 191 stocks closed higher, 125 declined while 27 remained unchanged. The value of shares traded during the day was Rs9.56 billion.

PTCL was the volume leader with 26.7 million shares, gaining Rs1.34 to finish at Rs29.33. Fauji Cement followed with 25 million shares, gaining Rs0.16 to close at Rs13.02 and Engro Corporation, with 9.7 million shares, gaining Rs4.33 to close at Rs 154.12.

Foreign institutional investors were net buyers of Rs206 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, November 20th, 2013.

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