Trade volumes fell to 86 million shares compared with Friday’s tally of 144 million shares. PHOTO: ONLINE/FILE
The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.41 % or 99.38 points to end at 24,401.57.
“Stocks opened positive and witnessed a short dip when inflation for November was announced at 10.9% against the consensus 10.56%,” said Fasial Bilwani of Elixir Securities. “However, broader market didn’t take long to recover with the turnover exceeding $80 million as compared to the $62 million average during November.”
Nishat Mills closed at a record high of above Rs114, while Pakistan State Oil proved to be a relief for the investors gaining 2.4%. “Strong institutional participation was evident, while day traders had a field day in small and medium sized firms.”
Meanwhile, JS Global Capital analyst Ovais Ahsan said that “consumer price index inflation for November reaching an all-time high increased chances of a price hike in interest rates which would benefit the banking sector”. Due to this, the market continued to move up into uncharted territory led by the banking sector as United Bank Limited gained +2.2%.
According to Ahsan, Engro Corporation initially gained as investors reacted to the expected inflation number which would have an adverse affect on one of the most leveraged corporation in Pakistan with the total consolidated debt of over $1 billion.
Trade volumes fell to 86 million shares compared with Friday’s tally of 144 million shares.
Shares of 379 companies were traded on the first trading session of the week. At the end of the day, 212 stocks closed higher, 146 declined while 21 remained unchanged. The value of shares traded during the day was Rs9.33 billion.
Fauji Cement was the volume leader with 16.4 million shares, gaining Rs0.24 to finish at Rs13.56. It was followed by Nishat Mills with 8.75 million shares gaining Rs3.88 to close at Rs114.01 and Engro Cooperation with 8.09 million shares gaining Rs1.00 to close at Rs149.81.
Foreign institutional investors were net buyers of Rs132 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, December 3rd, 2013.
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