Foreign institutional investors were net buyers of Rs313 million, during the trade session. PHOTO: INP/FILE
The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose to 0.74% or 184.69 points to end at 25,256.69 points.
The European Union’s decision to grant GSP Plus status to Pakistan was well-received by the stock market as the benchmark index closed at a new high record of 220 million plus shares. According to Elixir Securities analyst Muhammad Raza Rawjani, textile companies like Azgard Nine and Colony Mills were top gainers which had lagged in the rally leading up to the GSP Plus award date, while gains in large textiles such as Nishat Mills and Nishat Chunian were limited given the recent price performance.
“After the finance minister announced to exempt the fertiliser sector from gas price hike due in January 2014, Fatima Fertilizer and Engro Corporation were also in the limelight,” said Rawjani. “Reports of a possible hike in distribution margin for oil marketing companies kept investor interest alive in Pakistan State Oil.”
JS Global Capital analyst Ovais Ahsan said rumours regarding gas prices not being hiked for the fertilizer units drove the sector upwards. “This happened despite news flow suggesting the contrary as Engro (+2.5%), Fauji Fertilizer (+0.9%) and Fauji Fertilizer Bin Qasim Limited (FFBL +5.0%) gained,” said Ahsan, adding that the textile sector celebrated the GSP Plus status, which would enhance exports to the region by over $1 billion.
Nishat Mills (+2.3%) and Azgard Nine (+14.7%) were major gainers in the sector. Pakistan State Oil +2.17% , the largest oil marketing company in the country, rallied on rumours that dealer margins would be increased over the weekend by 10% from the current level of Rs2.23 per litre on motor gasoline and Rs1.86/liter on diesel.”
Trade volumes rose to 339 million shares compared with Thursday’s tally of 207 million.
Shares of 388 companies were traded on the last trading session of the week. At the end of the day, 272 stocks closed higher, 97 declined while 19 remained unchanged. The value of shares traded during the day was Rs12 billion.
Azgard Nine was the volume leader with 23.8 million shares, gaining Rs1 to finish at Rs7.81. It was followed by BankIslami Pakistan with 22.8 million shares, gaining Rs0.56 to close at Rs7.75 and Jahangir Siddiqui and Company with 22.05 million shares, gaining Rs0.21 to close at Rs9.43.
Foreign institutional investors were net buyers of Rs313 million, during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, December 14th, 2013.
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