Business

Market watch: Stock market crosses another milestone

Benchmark KSE-100 index rises 69.86 points.

Our Correspondent December 06, 2013

Traders monitoring the share price at the Karachi Stock Exchange on Friday, December 6, 2013. PHOTO: PPI

KARACHI: Continuing its strong upward trend, the benchmark KSE-100 index marched past another milestone of 25,000 before concluding yesterday’s session at an all-time high of 24,871.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.28% or 69.86 points to end at 24870.55.

JS Global Security analyst Wasi Khan said that investors were ‘actively’ participating as was evident through the higher trading volumes. “With no sign of weakness observed despite the technically over-bought state, the benchmark KSE-100 index marched past another milestone of 25,000,” said Khan. “Investors are actively participating in the market as witnessed by higher trading volumes, which indicates that the bullish tread is still intact.

“This is despite today’s news flow that the government is unlikely to meet FY14 fiscal deficit target due to its inability to achieve revenue target and expected slippages in subsidy and interest payments. The banking and cement sector remained in the limelight. Main movers today were OGDCL which established a new high around Rs285 and POL which breached the Rs500 level (Rs502 high).”

According to Elixir Security analyst Faisal Bilwani, gains of the stock market suffered a trim due to the activities of profit bookers. “The day started with system crossings in Bank Alfalah BAFL +2.02% that put financials on radar from the word go while National Bank of Pakistan NBP +2.7% also joined in and traded over 21 million shares by close on earnings and payout excitement,” said Bilwani.

“Energy names were disappointing while Fauij Fertilizer FFC +1.4% inched up on year end payout and off take excitement.”

Trade volumes rose to 241 million shares compared with Thursday’s tally of 188 million shares.

Shares of 359 companies were traded on the last trading session of the week. At the end of the day 180 stocks closed higher, 153 declined while 26 remained unchanged. The value of shares traded during the day was Rs11 billion.

Bank AlFalah was the volume leader with 35 million shares gaining Rs0.15 to finish at Rs25.82. It was followed by National Bank with 21.27 million shares gaining Rs1.47 to close at Rs55.90 and PTCL with 15.4 million shares declining Rs0.01 to close at Rs30.33.

Foreign institutional investors were net sellers of Rs420 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

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

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COMMENTS (1)

Muslim Leaguer | 10 years ago | Reply Economists define a stock market index as a barometer of economy. The rise in stock market index (KSE 100) is a consequence of a number of positive steps the PMLN Government has taken in improving the economy: 1. Improvement in electricity supply. The loadshedding has been reduced significantly as a result of resolution of circular debt (because of which the power supply line) was chocked, various power projects have been restarted (Nandipur, Neelam-Jhelum etc) and a large number of projects have been initiated (Quaid-e-Azam Solar Park) taking the power supply to more than 20000 MW. 2. Incentives for promoting Investment. Various incentives have been given for promotion of investment in Pakistan. Tax breaks have been announced to lure the people away from blocking their money in real estate and invest in the real economy. 3. Winning GSP Plus status from EU will boost the exports to Europe by more than US$ 1billion. 4. Control on corruption. The PML-N Government brings another good omen for the economy by reduction in corruption perception index by 12 points, as reflected in the Transparency International’s Report. The TI had audited & cleared various mega projects of Punjab Government (eg, Metro Bus, RIC etc). The trend is in the right direction. 5. Smooth transition towards democracy. Pakistanis have faced a number of changes taking place smoothly in Pakistan during 2013; a Prime Minister hands over the charge to elected Prime Minister, a President completing 5years tenure handed over the charge to newly elected President, an Army Chief completing 6years tenure hands over the bacon to his successor (earlier the Army Chiefs completing more than 5years tenure were either assassinated or were forced to resign for threat of impeachment) and now the Chief Justice retiring and handing over the charge to his successor. A clear sign that institutions have become more important than personalities. While a few haters will continue to roast in their jealousy, the world is seeing quite positive developments in Pakistan Long Live Pakistan!

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